• UK Tax Residence: Supreme Court decision in Davies and Gaines-Cooper
  • November 3, 2011 | Authors: Emma Hardwick; Michael T. McGowan; Andrew Thomson
  • Law Firms: Sullivan & Cromwell LLP - London Office ; Sullivan & Cromwell LLP - New York Office ; Sullivan & Cromwell LLP - London Office
  • The UK Supreme Court has handed down its judgment in Davies and Gaines-Cooper, two judicial review cases on the tax residence of individuals. The taxpayers argued that HM Revenue and Customs had said in guidance, and consistently taken the view in practice, that it would treat individuals in their circumstances as not resident in the United Kingdom. HMRC was refusing to apply that treatment, so the court should intervene and hold HMRC to its word. HMRC succeeded in convincing the court that the taxpayers had misunderstood the guidance and that there was no settled practice of the sort the taxpayers claimed.