Kevin McCabe v The Commissioners for HMRC
Decision date: 30 September 2022
Neutral citation: [2022] UKFTT 356 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Mr Kevin McCabe appealed HMRC closure notices for 2006‑07 and 2007‑08, arguing he had ceased to be UK resident after moving to Brussels on 4 April 2006 and/or by 5 April 2008, and alternatively that he was treaty‑resident in Belgium. The First‑tier Tribunal found on the balance of probabilities he remained UK resident throughout the Relevant Period and, under the UK‑Belgium DTC tie‑breaker, had permanent homes in both States but his centre of vital interests was in the UK, so he was treaty‑resident in the UK; the appeal was dismissed in principle and quantum reserved.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal applied a multifactorial common‑law residence assessment focusing on duration, frequency and quality of presence and the strength of ties to the UK (family, social and business), holding that frequent short productive visits together with substantial UK connections can demonstrate continued UK residence. For the DTC tie‑breaker the Tribunal treated a "permanent home available" as existing where a taxpayer habitually could use a dwelling, and where permanent homes existed in both States the decisive test was the centre of vital interests.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment observed that a tax‑motivated relocation is not automatically determinative of non‑residence but is a relevant contextual factor when assessing credibility and the weight of relocation steps; it also noted that habitual abode under the DTC gives weight to where nights are customarily spent, though the centre of vital interests can outweigh nightly‑based habitual‑abode comparisons.