HM Revenue & Customs published two consultation documents last week seeking industry and consumer views on a reformation of the rules governing both residency for tax purposes and the current non-dom tax structure.
In a poll of International Adviser readers, 84% said they welcome the consultations, which will also aim to include for the first time a statutory definition of UK residence for tax purposes.
However, a large percentage of respondents said the lack of clarity surrounding the rules in fact helps to generate business.
Bryan Low, director of cross-border financial consultancy Acuity, said he was not surprised by the findings of the poll but said that from a client’s perspective clarity will be welcome.
“As a client, it is currently frustrating if an adviser cannot tell you with certainty how you stand so clarity will be welcome,” he said. “However, there is also always likely to be a degree of uncertainty even if HMRC does manage to introduce a statutory definition of the rules around residency for tax purposes, as it always seems that, while the rules are on the surface quite clear, in practice the client’s situation never seems to quite match.”
Low added that there are always going to be those who are opposed to change. “The old adage that ‘no one likes surprises’ definitely rings true,” he said.
