Peter Vaines breaks down the Gaines-Cooper case & provides an update on other taxing matters
The Supreme Court handed down their judgment in the case of Mr Gaines-Cooper on 19 October. It may be remembered that Gaines-Cooper was seeking a judicial review of HMRC’s refusal to regard him as non resident in accordance with their established practice in IR20. HMRC acknowledged that if Gaines-Cooper satisfied the terms of IR20 they would be bound to honour it and treat him as not resident. The Supreme Court decided that he did not do so.
Gaines-Cooper
The leading judgment was that of Lord Wilson which contains some interesting features. He confirmed that to become non resident it is not necessary to sever your family and social ties. He makes it absolutely clear that the test set out by the Court of Appeal is wrong—that severance of such ties is too strong a word. A distinct break is required and this only encompasses a substantial loosening of social and family ties. He points out that as a taxpayer is permitted to make limited visits
