We all know about Chancellor of the Exchequer Gordon Brown’s economic tests for joining the euro. Now under pressure from The Sunday Times and The Guardian, he has announced another set of tests – for the review of the rules that determine liability to UK tax.
The Sunday Times recently predicted that individuals who are resident but not domiciled in the UK (who currently only pay UK tax on income and gains enjoyed in the UK) would soon have to pay tax on their worldwide income and gains if UK resident for more than four years. Instead, Brown announced a wide ranging review of both residence and domicile rules, on which a government report is expected by November.
