Wealthy British nationals fleeing Gulf conflict bypass UK to avoid tax bills

"I've had a disproportionate number of calls from people wanting to leave the UAE in recent weeks. I've told them not to rely on any exceptional circumstances provisions from HMRC. I can't imagine HMRC are very sympathetic here. There's UK taxpayers who have decided to leave to go to the likes of UAE. In HMRC's mind they've chosen to go there to not pay tax in the UK. They're not going to give you a green light to spend more time here and not pay tax."

"For those who have been non-resident for fewer than five years, it is not just income tax for the current year that could fall within HMRC's scope if they return. They could also face capital gains tax on any assets or business sold during the period they were away."

High-net-worth individuals who have been residing in the UAE and neighboring countries are temporarily relocating to countries like Ireland and France to escape missile and drone attacks while avoiding substantial UK tax obligations. With only three weeks left in the current financial year, many overseas residents have exhausted their allowable days in Britain without triggering tax liabilities. Some are requesting guidance from HMRC regarding potential 60-day extensions under exceptional circumstances provisions. Tax advisors caution against relying on such provisions, noting HMRC is unlikely to be sympathetic given that these individuals deliberately chose to leave the UK for tax purposes. Those who have been non-resident for fewer than five years face additional exposure to capital gains tax on assets or businesses sold during their absence, complicating their return decisions.

Read at www.theguardian.com