Resident in the UK or South Africa?

After an enquiry into the taxpayer’s affairs HMRC raised assessments for several tax years on the basis that he was treaty resident in the UK during the period 2 April 2010 to 5 April 2017. The taxpayer appealed. He did not dispute that he was resident and ordinarily resident in the UK for the years 2010-11 and 2011-12 under the common law and for 2014-15 onwards based on the statutory residence test. Rather he argued that on a proper application of Article 4(2) (the tiebreaker test) of the UK-RSA Double Taxation Convention 2002 he was treaty resident in South Africa for the relevant tax years.

The First-tier Tribunal had to determine the country with which the taxpayer’s personal and economic relations - centre of vital interests - were closest. If it was the UK he would be deemed to be treaty resident solely in the UK;...