The taxpayer had claimed tax relief for certain periods (approximately six years) when he was living abroad. The Crown appealed a decision of the commissioners discharging their assessment to tax.
Held: There is a distinction in law between the residence abroad and absence for the purposes of tax relief. The taxpayer can be resident, but absent abroad. For the purposes of the provisions of schedule E tax deductions on foreign earnings, the taxpayer should not be free to include periods when he was neither resident, nor ordinarily resident, when aggregating the qualifying period of absence. Whether someone was at any particular moment absent from the UK could only be answered in the context of the question. In this context that, must require the court to give to meaning of a qualifying period absence in the sense of not being physically present in the place of residence.
Income and Corporation Taxes Act 1988 193(1) Sch E
Updated: 17 December 2020; Ref: scu.78919