Pointless exercise

The First-tier Tribunal was asked in an application for a preliminary hearing to decide if the taxpayer was UK resident in 2007/08.

The facts were that the taxpayer left the UK on 2 April 2006 telling HMRC he was going to work overseas. He did not return in 2006/07 and the Revenue accepted he was non-UK resident for the year.

The taxpayer worked in the UK for 71 days in 2007/08. The tax department said he would be considered resident for the year.

He appealed claiming his non-residence status should continue into 2007/08 because he had made a distinct break from the UK by working full-time abroad in 2006/07. He cited the decision in Reed v Clark [1985] STC 323 as the authority for his assertion.

The First-tier Tribunal noted HMRC had not made a final decision on the taxpayer’s residence but wished to ask him questions...