Regulations have been revised for calculating residency in the UK for non-domiciliaries and will now count nights rather than days spent in the UK.
From April 6, if an individual spends more than 183 nights a year in the UK or averages more than 90 nights each year over a four-year period he or she will be regarded as tax resident.
PKF Accountants national director of tax Lisa Macpherson says clients may still resent having to comply with the scheduled implementation date.
She says it is noteworthy that Chancellor Alistair Darling chose not to draw too much attention to non-dom changes in his Budget speech last week.
Macpherson says: “Alistair Darling was very low-key in his speech but has given up a lot of ground. It looks like he has introduced a big relaxation for non-domiciliaries without drawing too much attention to it.”
FW Stephens senior tax manager Geraint Jones: “This is a fairer and more sensible way to calculate days spent in the UK and reflects the speed of modern air travel and the needs of the business community This is a significant U-turn by the Chancellor from his original proposals and will further damage his credibility in the City.”