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The taxpayer, an Austrian national, began work as an investment banker in London in 1997.
In 1998, he bought a property in the city, and his girlfriend moved to the UK to join him. He estimated that he would remain in the UK for two-and-a-half years, and he notified HMRC on form P86.
In 2001, he married his girlfriend and bought a property in Austria, where the couple planned to live eventually.
In 2002, the taxpayer left his UK employer, intending to return to Austria, but then he accepted a post with another bank in London. He made an agreement with his new employer that he would spend part of his week in Austria. His wife had returned to work in Austria in 2002.
In his tax returns for the three years 1998/99 to 2000/01, the taxpayer claimed he was resident but not ordinarily resident in the UK. The matter proceeded to the First-tier Tribunal, which found he was also ordinarily resident.
The taxpayer appealed.
The Upper Tribunal (Tax and Chancery Chamber) said that for an individual to be ordinarily resident in a country it was not necessary for him to intend to stay there indefinitely.
The First-tier Tribunal had taken into account various facts in concluding that the taxpayer’s residence had achieved sufficient continuity to be described as settled. The taxpayer had been resident and ordinarily resident in the UK for the years in question.
The taxpayer’s appeal was dismissed.
An article on this case will be published in a future issue of Taxation.
