HMRC v Glyn: upper tribunal finds that wrong residence test was applied
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![HMRC v Glyn: upper tribunal finds that wrong residence test was applied](https://vardags.com/images/pictures/5c6f900425d2f49d6b14595fc6462e23.jpeg)In the recent case of *HMRC v Glyn UKUT 0551 (TCC)* it was found that a First-tier Tribunal applied the wrong test when determining the residence of a taxpayer. Although the individual had a family home in the UK, and visited frequently, it was held that the lower tribunal had applied the wrong test in establishing that there had been a significant break from the UK. The Upper Tribunal found that the lower tribunal had:

- Misapplied the notion of 'settled purpose' to determine whether the individual had had a distinct break from the UK, and resided the UK family home was a habitual or settled residency.
- Concentrated primarily upon the reasons why the taxpayer had *kept* the UK property, rather than its use.
- Incorrectly found that the main reason for keeping the UK property was so that the individual could live there again in the future.
- Followed the case of the Supreme Court's decision in *R (Gaines-Cooper) v HMRC UKSC 47* and taken HMRC's IR20 guidance into account to determine whether a taxpayer was a non-UK resident on the basis of common law tests.

The tribunal has remitted the case to the lower tribunal for a re-hearing. The judgment can be read in full [here](https://www.bailii.org/uk/cases/UKUT/TCC/2015/551.pdf).



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