Need to establish a distinct break for non-residence in the UK

On 5 April 2005 the taxpayer and his wife left the UK and moved to Monaco indefinitely. He said wished to have a change in lifestyle and stop working. The couple owned a property in London which they kept while living in the principality.

In 2005-06 he received a large dividend from his main UK company the tax on which would have been about £5.5m had he remained resident in the UK. Based on his understanding of the HMRC IR20 booklet the taxpayer believed he could make a limited number of visits here and that retaining his UK home would not affect his claim to be non-UK resident. In 2005-06 he made 22 trips to the UK spending fewer than 91 days there. In 2010 he and his wife returned to the UK permanently and moved back into their London house.

HMRC said the taxpayer...