timebandit--the laws haven't changed but some of the interpretations have changed, particularly with regard to how many days you can be in the UK without losing your expat status (The Financial Times ran an article on this on 1st April). It's now ten working days.
My guess, and this is just a theory, is that the government is purposely making the system look muddled and thus in need of reform. Expats are easy targets because they are perceived to have lots of cash, benefit from being British without paying into the system, and have the option of return to reap the benefits of others' taxes. The current financial troubles only worsen matters. I would expect to see within the next few years at least the attempt to tax expats' income in a way akin to was US citizens face--a modest exemption followed by normal income taxes.
Britexpat--Only a minority of household pay income tax in the US after exemptions and such. And with changes in the tax code, this will be the case in the UK too.
Regardless, I would think they would institute a sales tax or VAT before messing with the cumbersome, expensive, and complicated system of income tax. But I don't think they'll do that.
timebandit--the laws haven't changed but some of the interpretations have changed, particularly with regard to how many days you can be in the UK without losing your expat status (The Financial Times ran an article on this on 1st April). It's now ten working days.
My guess, and this is just a theory, is that the government is purposely making the system look muddled and thus in need of reform. Expats are easy targets because they are perceived to have lots of cash, benefit from being British without paying into the system, and have the option of return to reap the benefits of others' taxes. The current financial troubles only worsen matters. I would expect to see within the next few years at least the attempt to tax expats' income in a way akin to was US citizens face--a modest exemption followed by normal income taxes.
Britexpat--Only a minority of household pay income tax in the US after exemptions and such. And with changes in the tax code, this will be the case in the UK too.
Regardless, I would think they would institute a sales tax or VAT before messing with the cumbersome, expensive, and complicated system of income tax. But I don't think they'll do that.