In January 2012, the taxpayer entered into an employment contract with Afferro Mining. In December 2013, his employment ended and he received a termination payment of nearly £1.46m. He claimed the first £30,000 was exempt under ITEPA 2003 s 403 and that £252,923 was exempt under s 414 (foreign service relief). L da Silva (TC7600) 
The issue was whether the taxpayer was ordinarily resident in the UK between 1 February 2007 and 5 April 2010 – the relevant period. If he was, foreign service relief would not be available. 
 
The taxpayer claimed that, from 2007, he spent about 70% of his time working outside the UK and that he was based in Portugal. However, the First-tier Tribunal said the evidence did not support this. He bought an annual rail season ticket in October 2007 from which it could be inferred that he commuted regularly to London from his home in Kent. On ‘an ordinary day’, the taxpayer could be found in the UK working in London or with his family or at leisure. The evidence was that his personal belongings were moved to Kent rather than Portugal. 
 
The tribunal concluded that the taxpayer was in the UK in 34 of the 40 months of the relevant period. His trips abroad were of a temporary nature, and he continued to be ordinarily resident in the UK for the period. He came to the UK for a settled purpose – to be with his family and to work. 
 
Many of the taxpayer’s submissions were not supported by the evidence. There may have been some uncertainty or instability in his employment and family life, but these did render the purpose of his relocation to the UK unsettled. 
 
The taxpayer’s appeal was dismissed. 
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