Spring 2008 Newsletter Content Winter Of Discontent CGT Winners CGT Losers Shifty Business Anything To Declare? Long Arm Of The Law Irreplaceable You Earn As You Pay Ask Questions Later Capital Ideas ISA ISA ISA Referee! Go Green VAT Or No VAT? Taking The Register Close Encounters May Contain Nuts Going Concern Ancient History Business And Pleasure Do Your Duty Know Your Rights Time To Go? Passing The Buck

Long Arm Of The Law The idea of becoming a tax exile is attractive to some people - find a sunny country that doesn't demand too much of your hard-earned money and relax. The trouble is that the UK authorities hate to see you go - well, they hate to say goodbye to your cash, at least. If you think you might go abroad to live, it's worth knowing how you can and can't benefit for tax. First, you really have to leave - to become "non-resident", you have to be able to show that you have not just popped abroad for some temporary purpose. The Revenue have recently won some cases which have shown that the rules are not clear cut, but are not interpreted in the taxpayer's favour. The rules on measuring non-residence are also going to be tightened up from April 2008 - if you are one of those people who can be in the UK for 90 days a year, you will have to count more days. Second, if you want to become "foreign domiciled", you have to cut your connections with the UK and establish a clear intention to live somewhere else for the long term. Even then, any UK property you retain will still be charged to inheritance tax in the UK (if it's bigger than the nil band, currently £300,000) - and the whole of your worldwide property is caught if you die within three years of changing to a foreign domicile. The UK government seems determined to close down some of the tax breaks enjoyed by foreign domiciled people. If you have enjoyed them in the past, or you hope to enjoy them in the future, we will be happy to discuss with you how you can still take advantage.