ARTICLE · 22 JULY 2010

Leaving on a jet plane

Devereux Chambers

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Residence status is an extremely important concept in personal taxation and underpins an individual’s liability to income and capital gains tax.

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Christopher Stone

Residence status is an extremely important concept in personal taxation and underpins an individual's liability to income and capital gains tax. The Court of Appeal's judgment in the joined judicial review applications of Gaines- Cooper v HRMC; Davis & James v HMRC [2010] EWCA Civ 83 will have practical application for thousands of people seeking non-resident status. In a decision on the status and application of IR20, HMRC'S guidance leaflet on residence, the court upheld the department's interpretation of chapter 2, confirming that HMRC had not applied the guidance unfairly in these cases and the appellants had no legitimate expectation caused by a change of practice. This article explains the court's decision and sets out the practical implications of the judgment for those advising clients on their residence status. All chapter and paragraph references are to the IR20 leaflet (www.lexisurl.com/ir20 ) unless specified otherwise.

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