Gaines-Cooper: Does HMRC Offer Us Any Guidance?

Wednesday saw the long awaited decision for Robert Gaines-Cooper in the Supreme Court, where the appeal was dismissed by a 4-1 majority. This case was not only about the UK residence rules (which by the Supreme Court's own admission are "very poorly drafted" and "should have been much clearer") but also about clarity in the UK tax system. Does the taxpayer have a legitimate expectation to rely on HMRC guidance and settled practice to determine UK residence?

Mr Gaines-Cooper's case contained a complex set of facts. A British citizen, Mr Gaines-Cooper was born and educated and for many years lived in the UK. By 1974 he had formed the view that the tax regime in the United Kingdom was unfavourable and on that basis he began to establish overseas interests. He did so first in Canada and then in the Seychelles, where he purchased a house and he was granted a residence permit in the Seychelles in 1976, where he has had close links ever since.