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Where Taxpayers and Advisers Meet

Does holding ordinary UK bank accounts have a bearing on residency status?

io
Posts:7
Joined:Wed Aug 06, 2008 3:26 pm

Postby io » Mon Jul 11, 2005 1:52 am

I used to live in the UK (more than three years ago) and my parents still have a house there. Do the bank accounts I still maintain (now tied to my parents address) have a bearing on my residency/ordinary residency/domicile status? I have always wondered about that one.

Cheers.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Postby maths » Mon Jul 11, 2005 2:34 am

No.

If that is your only connection with the UK no problems.

AA UK
Posts:270
Joined:Wed Aug 06, 2008 3:22 pm

Postby AA UK » Mon Jul 11, 2005 6:21 am

I agree with 'maths', but cannot see why you would need onshore UK bank accounts since offshore accounts in the Channel Islands or Isle of Man would carry less risk of HMRC thinking one had retained ties to the UK.

Wealth Protector
Posts:75
Joined:Wed Aug 06, 2008 3:24 pm
Location:UK and Mainland Europe
Contact:

Postby Wealth Protector » Tue Jul 12, 2005 7:12 am

Is it not the case though that the existence of any bank account may be used by the IR when assessing domicile and therefore liability to UK IHT? I believe that there have been many instances where existence of accounts in the UK has been successfully argued as an 'intent to return at some time in the future' and thence to liability on the estate to UK IHT through thus proven UK tax domicile...?
Rex Ashcroft
Director
Wealth Protection International Limited
Tel: 0800 731 7479 Mob: +44 7834 393899 Skype: rexashcroft
Email: info@wealthprotect.co.uk

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Postby maths » Tue Jul 12, 2005 2:06 pm

The IR may try this line of attack but the existence of UK bank accounts by no means leads to UK domicile status.

It again does not by any means suggest an intention to return to the UK.

Such contentions should be resisted at all costs.

AA UK
Posts:270
Joined:Wed Aug 06, 2008 3:22 pm

Postby AA UK » Wed Jul 13, 2005 1:03 am

I agree oce agaain with maths, but I also agree with Wealth Protector! The answer here will depend on the facts. What was your domicile of origin? Has it changed? If so when and where do you reside? What evidence is there when everything is taken into account? I am sure that Madonna has UK bank accounts and owns property in London, but I doubt she is domiciled in England. Similarly we'd need more facts about this case!


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