My client is a non-UK domicile and has been a resident and ordinarily resident in the UK for five years, while completing and submitting his tax returns claiming the remittance basis of taxation. His family have a significant international business empire, of which he is a shareholder. These holdings were settled into an offshore trust before coming to the UK. Also, a substantial capital appointment was made from the foundation settled by his grandfather, the monies being placed in a bank account with HSBC, Switzerland. The interest on the capital was accumulated in a separate bank account and capitalised each April up until 2008; since then the interest has been accruing in a segregated account.
High-net-worth individuals seeking solace from the Gaines-Cooper ruling will be tempted to look at the forthcoming new statutory residence test, but even that will impose strict conditions on tax exiles, say David Anderson and Andinee Pillay Jagambrun
