Passengers in transit to be subject to UK tax?
Travel Insurance News - 24/02/2008
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Among a new spate of tax reforms this spring by HM Revenue & Customs, one may include a nod of clemency to harsh taxes on non-domiciled residents of the UK, even if they are only passing through the airport or spending a night in an airport hotel.
To qualify as a resident of the UK, there is a 90 day period to be spent in the country to be eligible. HMRC, in an apparent move of concession, said that anyone simply passing through a United Kingdom airport will not have the day spent in transit cont towards the 90-day tally, as long as no work was done during that time. How this will be policed and enforced is still in question, and Ernst & Young partner Andrew Tailby-Faulkes says, : ‘The example they give is of someone landing at Heathrow and then fitting in a meeting before catching a later flight from Gatwick. What if you have a quick meeting with a colleague in Starbucks? Does sending e-mails from a laptop breach the new guidelines? And how will the rule be policed effectively?’
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