If you are thinking of retiring abroad to enjoy a better climate and escape the UK tax system, you might find it harder than you expect, especially after a recent well-publicised tax case in the Court of Appeal concerning a man who went to live in the Seychelles.

The man in question was a certain Mr Robert Gaines-Cooper who had made a considerable fortune in business and wanted to enjoy it as someone whom the UK tax authorities would treat as non- resident, and so broadly free from tax on all his income and gains outside the UK.

There are two main ways of becoming non-resident. If you leave the UK and work under a full-time contract of employment that will last for at least one complete tax year , you can become non-resident from the day after departure, provided your return visits are limited to fewer than 91 days per tax year .

But if you retire abroad or you are leaving for some other purpose, there must be a demonstrable change in your normal pattern of living which clearly shows that there is a break from UK residence. In future, would-be non-residents should ensure that they can demonstrate that they have cut meaningful ties with the UK. In particular , such emigrants should:

• Sever all business, social and family ties with the UK. For example, resign from employment, close bank accounts, take their family with them, cancel membership of clubs etc.
• Sell any accommodation, or at the very least let it out on a long lease (even then, HM Revenue & Customs will want a good explanation as to why the property is being retained).
• Create meaningful ties with the new country of residence – for example, buy a property, register to vote, make a will there or have children educated there.

If you are going to live abroad, but not under a full-time contract of employment, you will need to take care to sever your ties with the UK. Even if you manage to achieve non-resident status, remember that when you are counting days in the UK, any day in which you are here at midnight is considered to be a day spent in the UK.