18th December 2007
Business travellers warned of UK tax changes
People who regularly travel to the UK to do business may find themselves tax-resident under new government proposals, experts have warned.
The Chartered Institute of Taxation (CIOT) says that business travellers based abroad who regularly come to the UK to work may find themselves subject to British taxation, even if they make just four overnight stays per month.
Under changes to the UK's tax residency test due to be implemented in April 2008, days of arrival into and departure from the UK will count as days of residence, meaning that a single overnight stay will count as a two-day visit.
Frequent visitors could find that they inadvertently exceed the 90-day per year residency limit, becoming liable for UK tax on their earnings.
"This will have a genuine and really serious impact on London and other major UK cities as places to do business," the CIOT warned in a submission to the Treasury.
It added that the rules will allow "business travellers only 45 visits to the UK a year, fewer than four a month, or even fewer if they also have the odd holiday here as well".
The Chartered Institute of Taxation (CIOT) says that business travellers based abroad who regularly come to the UK to work may find themselves subject to British taxation, even if they make just four overnight stays per month.
Under changes to the UK's tax residency test due to be implemented in April 2008, days of arrival into and departure from the UK will count as days of residence, meaning that a single overnight stay will count as a two-day visit.
Frequent visitors could find that they inadvertently exceed the 90-day per year residency limit, becoming liable for UK tax on their earnings.
"This will have a genuine and really serious impact on London and other major UK cities as places to do business," the CIOT warned in a submission to the Treasury.
It added that the rules will allow "business travellers only 45 visits to the UK a year, fewer than four a month, or even fewer if they also have the odd holiday here as well".
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