We have noticed significant changes in the way HMRC is approaching domicile challenges.
These enquiries appear to have been centralised and are receiving so-called ‘specialist’ consideration. HMRC is demanding a huge amount of information going back sometimes 30, 40 or 50 years. It has been asserted that gathered facts can override a person’s stated intentions even in circumstances where that individual’s socio-economic connections with the jurisdiction, which is their de facto domicile of origin, are very strong.
The enquiries seem pointless for ‘long stayers’ given the change in tax treatments for such non-domiciled individuals who have been in the UK for 15 out of the last 20 years from 6 April 2017. We also believe that HMRC is precluded from revisiting earlier tax years, which are strictly ‘closed’ given the failure by the tax authorities to challenge an individual’s annual declaration of the non-domiciled tax boxes.
If you have received a domicile enquiry, please contact Lynn Gracie (firstname.lastname@example.org) for expert advice on HMRC’s powers to demand information.