Wealthy British nationals living in the Gulf are seeking refuge in Ireland and France to avoid UK tax liabilities, rather than returning to Britain amid missile and drone attacks in the region. With the current tax year ending on 5 April, many have already used up their permitted days in the UK without incurring taxes.
Tax advisers report a surge in calls from high-net-worth individuals wanting to leave the UAE. Nimesh Shah of Blick Rothenberg warned clients not to rely on HMRC's 'exceptional circumstances' provision, which allowed extra days during the pandemic but is unlikely to apply now. 'HMRC are not going to give you a green light to spend more time here and not pay tax,' he said.
For those non-resident for fewer than five years, returning to the UK could trigger capital gains tax on assets sold during their absence. One business owner told the Guardian he was staying in Dublin until after 5 April to avoid this. Another said he would spend time in France.
The number of days an individual can stay in the UK without becoming tax resident depends on ties such as accommodation, spouse or children. Many are allowed as few as 45 days. David Little of Evelyn Partners noted that even a few extra days could make worldwide income and gains taxable in the UK.
