"living the high life in Marbella after buying a flat in the tax haven of Gibraltar then selling his business in the UK and saving a fortune in capital gains tax."I listened to the interview and wondered how soon it would be before Mr Yeung receives a visit from the taxman. He told us that he sold his business for £2m and did not have to pay CGT as he had established residence in Gibraltar. The impression given was that this was as simple as buying a small property there. He doesn't live there though. He now lives in Marbella. I hope he left the UK before he sold up and doesn't plan to return.
Oh dear. I imagine a few accountants and tax advisers will be asked to advise clients on this "wheeze" over the next few days and weeks. Possibly even more people will attempt to replicate James' escape from CGT without taking advice. And of course there will be questions in Parliament and demands that the rules be changed to prevent such "outrageous" and "blatent" tax avoidance.
Er. The UK tax rules don't allow it. Which means a number of key issues weren't mentioned in the interview. And if it were that easy to take up residence in Gibraltar I imagine I would have heard about it before now. I note that Piers Morgan has also visited Gibraltar so perhaps we shall learn more when that episode is broadcast.
In the meantime if you want to know about capital gains tax planning that is based on more than simple holiday sand, do contact an independent tax expert.