Acquisition of a domicile of choice in the UK

After making enquiries into the taxpayer’s tax returns HMRC concluded that the taxpayer had acquired a UK domicile of choice. It issued information notices (FA 2008 Sch 36) to obtain information about his worldwide income and gains. The taxpayer applied for closure notices or partial closure notices on the basis that he was not UK domiciled and appealed against the information notices.

The First-tier Tribunal considered first whether it had the jurisdiction to determine a person’s domicile in these circumstances. After a lengthy analysis of the case law it found that it did have this power. The taxpayer’s domicile was at the heart of the information notices and the tribunal would have to consider this matter to determine whether the notices were ‘reasonably required’. 

The judge decided the tribunal should exercise that power because deciding the domicile issue would ‘significantly reduce the time and cost’ of the...