- Another year a “small price to pay” for an effective rule says KPMG
A written ministerial statement (PDF 36 KB) published today with draft finance bill clauses states that HM Treasury has decided to delay the implementation of a new statutory residence test until April 2013 – a year later than the original proposal of April 2012.
According to David Kilshaw, chair of private client advisory, at KPMG in the UK, although this delay potentially means another year of uncertainty on tax residence, it is to be welcomed:
“Introducing a statutory residence is a fundamental change to the British tax system and it’s crucial that the authorities get it right. Some British expats may react with dismay to the delay as they potentially face another year of uncertainty. But if the end result is a workable, well thought out and sensible test that will stay in place for years (if not decades) and which improves the UK’s attractiveness as a destination for overseas visitors, that is arguably a small price to pay.
“We hope that the tax authorities will provide some more helpful guidance for people seeking clarification on their current residence position. Anyone uncertain on where they stand may well need to take some professional advice on their tax residence whilst we await the statutory residence test.
“The Treasury has opened the door to a long and detailed period of consultation on this important new rule. Those likely to be affected by it have a real opportunity now to engage with the authorities on how it should work.”
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
Tel: 0207 694 4246 Mobile: 07920 274 856: firstname.lastname@example.org
KPMG Press Office: 0207 694 8773
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