Distinct break

The taxpayer decided he would emigrate from the UK to Monaco for the indefinite future.

He was married with three grown-up children and owned a property in London which he kept while living abroad.

He had received a very large dividend in respect of his main company the tax on which would have been about £5.5m had he continued to be resident in the UK.

HMRC claimed the taxpayer remained dual resident for 2005/06 because he maintained his UK home and returned to it frequently while abroad.

The taxpayer said he had undertaken a new way of life. He believed he could make a limited number of visits to the UK and that retaining his London property would not affect his claim to be non-resident.

The matter proceeded to the First-tier Tribunal. The judge concluded that the taxpayer had become non-resident. He had made a home in...