Flying the nest

JON GOLDING considers the effect of 'resident and ordinarily resident' status on an individual's UK tax liabilities

It was evident at a recent seminar which the writer gave in Kuala Lumpur that many high net worth individuals are leaving the UK for sunnier climes and as a consequence their advisers are following them.

Is this a case of the golden goose migrating and taking its tax eggs and nest with it? The tax rules regarding expatriates will depend on taking the analogy a bit further whether the goose is merely migrating for the winter or intending to find pastures new indefinitely.

Of importance in this area will be the residence and ordinary residence position and — to an extent — the domicile issue. In addition residence has an effect on other taxes such as capital gains tax (CGT) National Insurance contributions (NICs) and inheritance tax (IHT) and...