McCabe v The Commissioner for His Majesty's Revenue and Customs (INCOME TAX - residence - whether Appellant had ceased to be resident in the UK - application of UK-Belgium DTC) [2022] UKFTT 356 (TC) (30 September 2022)

McCabe v The Commissioner for His Majesty's Revenue and Customs (INCOME TAX - residence - whether Appellant had ceased to be resident in the UK - application of UK-Belgium DTC) [2022] UKFTT 356 (TC) (30 September 2022)

The appellant did not effect a distinct break in the pattern of his life in the UK during the relevant period. He retained substantial personal, economic, and social ties to the UK, including family, business interests, and continued use of the UK home. Application of the DTC tie-breaker resulted in the appellant being deemed UK resident, as his centre of vital interests remained in the UK. The appeal was dismissed.

Citation
[2022] UKFTT 356
Parties
Appellant: Kevin McCabe; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
30 September 2022
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Residence, Double Taxation Convention, Capital Gains Tax, Statutory Interpretation
Tax Law Income Tax Residence Double Taxation Convention Capital Gains Tax Statutory Interpretation

Case Brief

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Parties

Kevin McCabe

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Judgment

Legal Issues

  1. 1 Whether the appellant ceased to be resident in the UK for tax purposes during the relevant period (2006-07 and 2007-08)
  2. 2 Whether the appellant is entitled to be treated as non-UK resident under the UK-Belgium Double Taxation Convention (DTC) for the relevant period

Ratio Decidendi

The appellant did not effect a distinct break in the pattern of his life in the UK during the relevant period. He retained substantial personal, economic, and social ties to the UK, including family, business interests, and continued use of the UK home. Application of the DTC tie-breaker resulted in the appellant being deemed UK resident, as his centre of vital interests remained in the UK. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appellant is held to have remained resident in the UK for the relevant tax years.
  • Quantum of tax due is reserved for later determination.