The recent tax tribunal case regarding tax residence involving Sir John Griffin, founder of Addison Lee, is a useful reminder that obtaining residence in another country does not automatically remove exposure to UK tax. This case dealt with the tax years 2013/14 to 2019/20 before the UK replaced the old domicile-based and remittance basis systems with a modern residence-based framework of Foreign Income and Gains and Long-Term Residence for Inheritance Tax. Despite this, the case is still relevant as it highlights the importance of establishing the relevant facts and understanding the interaction of different jurisdictions.
The case shows the decisive factors are where a person actually lives and where their life is centred which is also relevant now with the Statutory Residence Test (SRT).
The Sir John Griffin case
In September 2026, the First-tier Tribunal found that Sir John Griffin remained domiciled in England and Wales throughout the tax years 2013/14 to 2019/20, despite his claim to be domiciled in Ireland. HMRC’s success increased his tax liability by more than £20.5 million.
Griffin had substantial connections with Ireland: his parents were Irish, he spent part of his childhood there, and he owned property and held business interests in the country. However, the tribunal concluded that England remained the centre of his life because his home, family, principal business interests and wealth were largely based there.
The tribunal focused on what Griffin did, rather than solely on what he said he intended to do. In one of the years under review, he spent only eight nights in Ireland. His plans to move there were therefore not sufficiently definite to establish Ireland as his permanent home.
A residence permit is not a tax shield
A common misconception is that a residence permit or tax residence certificate from a low-tax country automatically removes UK tax exposure. It does not.
A residence permit grants the right to live in a country, but it does not necessarily establish that a person is:
- tax resident there;
- living there permanently;
- resident there under an applicable tax treaty; or
- no longer UK resident.
Tax authorities examine the reality of the person’s circumstances, including:
- the time spent in each country;
- where their family lives;
- the location of their main home;
- where they work and run their businesses; and
- where their personal and financial interests are based.
The UK Statutory Residence Test
For UK tax purposes, residence is determined under the SRT. The test considers factors including days spent in the UK, available accommodation, family connections, work and previous UK residence.
A person may therefore have residency rights in another country and still be UK tax resident if their circumstances meet the UK rules. Equally, spending a limited amount of time in a new country does not necessarily make it their genuine home.
What about tax treaties?
When two countries both regard a person as resident, the relevant tax treaty may determine which country has primary taxing rights. Treaty tests may consider:
- where the person has a permanent home;
- where their personal and economic interests are strongest;
- where they habitually live; and
- in some cases, their nationality.
These tests are fact-based. Merely holding a residence permit or certificate is not conclusive.
Substance matters
The broader lesson is straightforward: tax residence depends on conduct and circumstances, not just paperwork.
If someone claims to have moved overseas but continues to spend substantial time in the UK, keeps their family and main home here, and runs their business from the UK, HMRC may scrutinise whether the move is genuine.
Clear evidence of a genuine change in lifestyle can therefore be as important as obtaining the appropriate residency status.
Practical lessons about tax residence
The Griffin case highlights six practical points:
- A residence permit or a right to live in a country does not automatically change a person’s tax position.
- Conduct often carries more weight than stated intentions.
- The time spent in each country matters.
- Family, home and business connections can be decisive.
- Tax treaties examine the reality of a person’s circumstances.
- A genuine move overseas usually requires more than residency paperwork.
Conclusion
The central lesson is that tax outcomes follow facts and substance, not labels or paperwork. Moving overseas can have significant UK tax consequences, but obtaining a residence permit elsewhere is only one part of the picture.
The key question is not simply “Where do you have residence?” but “Where do you actually live, and where is your life genuinely centred?” That is ultimately what HMRC and the courts will examine.
For more advice about tax residence and how this affects you, don’t hesitate to contact our team on 01905 777600 or email hello@ormerodrutter.co.uk
This article is correct as at the date of publication and is intended for general guidance only. It does not constitute tax advice and should not be relied upon as such. Tax rules and HMRC guidance can change, and individual circumstances vary. If you would like advice specific to your situation, please contact us and a member of our team will be happy to help.
