.png)
.png)
The Chartered Institute of Taxation (CIOT) has welcomed the Liberal Democrats' tabling of an amendment to the Finance Bill for a comprehensive statutory tax residence test.
The CIOT highlighted that it has been calling for such a test for some time, as a way of bringing certainty into the current residence situation, particularly in the light of recent cases.
The organisation said it intends to discuss this issue with relevant professional bodies, to develop a consensual view on the appropriate test to adopt, which does not adversely affect yield.
It is likely, the CIOT added, that any sensible comprehensive test will take some time to devise, but the institute believes it will be possible to achieve a statutory residence test in next year's Finance Bill.
The chairman of the CIOT's CGT and investment income sub-committee, John Barnett, said: 'While the Government has stated that it does not wish to make any more changes to the non-domicile rules, the CIOT feels that a statutory residence test would bring certainty to this complex area.
'If done with sufficient consultation it need not result in unexpected or adverse consequences - and it will be popular with the business community because it will avoid the current ambiguities that are not helpful either to HMRC or to taxpayers.'
