The Gaines-Cooper case impacts on thousands of migrants

On 16th February 2010 the UK Court of Appeal ruled that Robert Gaines-Cooper was liable to pay UK tax despite living based in the Seychelles.
Mr Gaines-Cooper, 72, bought a French-style plantation house in the Seychelles in 1976. He renovated it at a cost of £1.6 million and it has long been his chief residence. He had kept to HMRC’s rules by spending no more than 91 days a year in Britain.
However he also has a house in Henley-on-Thames, where he keeps his collections of paintings, guns and classic cars, and where his second wife and son lived for some time. Mr Gaines-Cooper’s son went to an English school in 2002 and his will was drawn up under English law.
Although the three Court of Appeal judges expressed “some sympathy” for Mr Gaines-Cooper, they ruled that he had never qualified for exemption from British taxes as a non-resident. They said that England had remained the “centre of gravity of his life and interests”. Lord Justice Moses felt Mr Gaines-Cooper had failed to show “a distinct break” from his social and family ties in the UK. Now he may be pursued for tax bills dating back to 1993, estimated at about £30 million.
The ruling is a serious blow for Brits who are based overseas but visit Britain frequently. After the court’s decision Her Majesty's Revenue & Customs vowed to increase its efforts to catch similar people.
Clearly the Gaines-Cooper case means financial planners need to brush up on their international tax expertise, so where do you go for advice? We believe the advice offering at Montfort International plc stands head and shoulders over others. Montfort has 15 years experience in the field of international migration and pension transfers, so contact them now on 01483 202072 or info@miplc.co.uk.