New regime from 6 April 2009

HMRC have published Revenue and Customs Brief 17/09 summarising the main changes to the domicile and residence regime introduced by Finance Act 2008 effective from 2008-09.

The Brief also considers the relevant HMRC guidance. Booklet IR20 was updated last year to incorporate some changes introduced by FA 2008 but still needs significant revision.

The department plans to withdraw the booklet replacing it with revised guidance soon.

HMRC say they will also be withdrawing any other departmental guidance on residence and ordinary residence contained in other Revenue manuals statements of practice and publications.

In the light of this any practices associated with the old guidance whether in IR20 or elsewhere will not apply from 6 April 2009 unless provided for in the new guidance.

That new guidance will be in the form of a new set of Internet-based guidance supported by HMRC’s manuals (also available...