Emergency Comin Meeting Agenda Item

[Jesdo]

Well fair to a point. We were discussing this today at work and one example given was that of a HNW who lives outside of the UK, but whose son goes to a boarding school in the UK. Under the current rules he could visit the his son in the UK for weekends, travelling on saturdays and returning on sundays and this would not count towards his 90 days. With the changes, he will no longer be able to do that.

 

The UK has got to make its mind up whether it wants to encourage entrepreneurism or gather taxes. If it is the latter then we are back to the days of the 'brain drain'.

 

I am not advocating any free rides, but the current 90 day rule is accommodating.

 

Trouble is with the new rules, I am told, even going through an airport could count as a day, which could give problems for people travelling from here to other destinations outside of the UK but having to go via the UK. If you enter a part of the airport accessible by the general public you are caught. So, if you have a Manx flight to say, Gatwick, and have to come out of arrivals to check in for your onward flight, you will be in a part of the airport accessible to the public and thus this will count as one of your days in the UK for tax purposes. You will do the same for your return trip and so will have clocked up 2 days in the UK without having undertaken any business there. It doesn't take many trips like that, coupled with trips to the UK alone for you to hit the 90 limit.

The concept of living outside the UK but visiting a child at boarding school *weekly* is a prime example of the lifestyle choices I was referring to. Either accept that such a lifestyle now costs more, or adjust to save money (e.g. less frequent visits, local schooling, better tax avoidance advice etc). I can't help but feel that it's fair to count 2 days in the UK as 2 days in the UK - regardless of whether they're business or pleasure.

 

I'm afraid I can't have too much sympathy for elite lifestyles like this suffering the occasional knock-back, particularly since there's invariably ways around it. I appreciate your point about encouraging entrepreneurism v brain drain but not convinced that this rule change would significantly affect this.

 

In Spock's link, it was quoting a 183 day limit. Is this a change to the 90 day limit to accomodate the extra travel days or am I being naive?

[Gladys]

Well, I am not an elitist, far from it. But you do have to face up to reality. In the mid-70's there was an immense exodus of talent, of all descriptions, due to the heavy tax regime. Britain was in dire straits, not only with the economic situation, but with most of the intellect to put things right, gone. I suspect, but really do not know, that the 90 day rule was introduced to woo these people back so that even if the UK didn't benefit from their taxes, it would benefit from their talents and expertise.

 

I hear that some of the major hedge funds who rely on shipping expertise in to the City temporarily, are just considering re-locating elsewhere (which is quite easy) rather than deal with the effects of this change. That is just one sector which is reliant on internationally based talent that will up sticks and go. London as an international finance centre has only kept that position because it has encouraged and nurtured the expertise; there really is no other inherent reason. Discourage the talent and London's importance will wane.

 

But I do hear what you say as far as elitism, but the fact remains that while money is the currency, that is the only true measure of worth. If there are people who can generate wealth, we need them no matter how vulgar and ostentatious their wealth may be; a dog will eat better under the table of a king than at the knee of a pauper.

[spock]

nobody has yet denied the UK's Finance Bill changes were discussed this week by CoMin.

 

And in the meantime there has been alot of useful information about the subject posted by Forum members

[oldmanxfella]

nobody has yet denied the UK's Finance Bill changes were discussed this week by CoMin.

 

If so its odd timing as the changes were announced in the pre budget report three months ago:

 

Pre budget

 

Think I'll be waiting a while to buy that swanky seafront apartment.

[spock]

 

what's news about this?

 

 

Manx note UK tax changes

26/01/2008 06:01:51

 

 

The Government is to look at the potential implications for the Island of proposed changes to income tax rules in the United Kingdom.

 

The proposals, which were first signalled by the UK Government last year, include a new approach to determining UK tax residence and changes in the treatment of non-domiciled residents in the UK.

 

Following a consultation announced in December, HM Revenue & Customs has now published draft legislation.

 

Treasury Minister Allan Bell (pictured) says his Department has been keeping a close eye on these proposals and are working with the private sector to identify implications for the Island and ways to move forward.

 

He says they will be raising any issues that are identified with the UK as part of our ongoing dialogue with them over a range of tax issues.’

[localyokel]

 

what's news about this?

 

 

Well what's news for the local newspapers seems pretty old news for those who have been following what has been going on.

[Gladys]

It is news because what has been consulted about in broad terms, has now been put into first draft legislation and published this week. It has implications for the UK resident, non-dom clients of many CSPs and thus for that business sector as a whole.

 

So it is probably much more newsworthy than another discovery of white dog poo in Victoria Street.