UK taxman to target non-resident's in transit
25-Feb-2008From April, HM Revenue & Customs is to extend its remit to airport lounges as part of a series of tax reforms that include the contentious clampdown on non-domiciled UK residents.
When draft legislation for the new measures was published in January, the government said that the days people spent travelling in and out of the UK would count towards the total of 91 days that qualify visitors as UK resident, unless they stayed "airside" - in parts of the airport not accessible to non-travellers.
But after further review, HMRC further clarified in February that anyone simply in transit through the UK would not have that day counted towards the 91-day tally, even if they left one airport and travelled to catch a plane at another.
But the Revenue says the exemption will only apply if no work is done in the UK on the day in question. It does not set out what constitutes "work" in this context - meeting with a colleague in a coffee shop or sending an email - and it does not say how the rule will be enforced.
A Treasury spokesman said: "We are aware of the potential issues for some transit passengers and are considering this as part of the consultation."
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