UK tax reforms to affect airport lounges?
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Posted on: February 25th, 2008 by Dave Bess
It is a possibility that the HM Revenue and Customs agency could be including airport lounges in its tax reform, expected to be finalized in April this year. Other tax changes include those relating to non-domiciled residents in the country, which has been met with much skepticism and apprehension by the public and lawmakers alike.
The Financial Times reported on the situation, saying that it was given the summation by the HMRC last week. According to the paper, the tax reform would declare that anyone passing through a UK airport would not have that visit tallied to the 91-day period leading to UK resident status. This changes however if work was done on this day in transit.
Ernst & Young’s Andrew Tailby-Faulkes says, ‘The example they give is of someone landing at Heathrow and then fitting in a meeting before catching a later flight from Gatwick. What if you have a quick meeting with a colleague in Starbucks? Does sending e-mails from a laptop breach the new guidelines? And how will the rule be policed effectively?’
Cyberscribe
I’m quite sure that sending emails while sitting at starbucks could be excused from these guidelines.
Otherwise what will be next?
Kat
I think that transit should be just that - transit and nothing else whatsoever, how can they begin to justify taxing what you do whilst sitting in a coffee shop at the airport, otherwise they will need to police it one day and then things will get silly much like what is said in the santence above.
Blogman
Airport lounges to be taxable? That’s insane indeed. Whatever happened to duty free?