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04 May 2010
Issue: 4253 / Categories: Tax cases , Residence & domicile
Karim (TC306)

The taxpayer was born in Tanzania but had been resident in the UK for many years. She ran two care homes which she managed directly through her company T Ltd.

In April 2000 N Ltd a non-UK incorporated and resident company began providing professional services to T Ltd and the taxpayer became an employee of N Ltd.

In 2000 the taxpayer started to live in Portugal and in 2003 took up employment with a Portuguese enterprise. She sold her shares in T Ltd in November 2003 and in the same tax year sold two properties which she owned in the UK.

HMRC assessed the gains on the properties to capital gains tax on the basis that the taxpayer was UK resident.

The taxpayer appealed saying she was not resident or ordinarily resident for 2003/04.

The First-tier Tribunal found that the...

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