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The difference between UK 'resident' and 'ordinarily resident' status

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With election fever growing and the media spotlight continuing to fall on Lord Ashcroft and other political party donors, the immigration team at CMS Cameron McKenna has provided some useful clarification on UK residence that is highly relevant to those managing international assignments.

Residence/ordinary residence

The issue of residence and/or ordinary residence in the UK has attracted fresh media attention, and recent cases through the English courts have left some individuals asking important questions about their status.

It seems this is an area of increasing intensity of inquiry or scrutiny by Her Majesty's Revenue and Customs (HMRC) in their pursuit of higher tax take. A person who is resident, but not ordinarily resident, is liable to tax on his UK earnings – and his foreign earnings are taxable only on the remittance basis. If, however, he is resident and ordinarily resident, he is liable to tax on the whole of the earnings from the employment, irrespective of how little of those earnings are earned in the UK.

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Provision of UK immigration advice by employers

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Immigration experts Newland Chase explain what immigration advice and services employers are legally permitted to provide.

Legislative context

The provision of immigration advice and services in the UK is regulated under Section 84 of the Immigration & Asylum Act 1999.

Section 84 (1) states that 'No person may provide immigration advice or immigration services unless he is a qualified person.' Qualified persons include (but are not limited to) those who are registered with the Immigration Services Commissioner or who are regulated by designated Law Societies or Bar Councils.

Those who provide immigration advice or services in breach of Section 84 are committing a criminal offence and are liable, on summary conviction, to a statutory maximum fine and/or six months' imprisonment, or, on indictment, to an unlimited fine and/or two years' imprisonment.

There are limited categories of persons to whom Section 84 (1) does not apply, either through specific exemptions or by ministerial order.

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Identity Cards for Foreign Nationals (ICFN)

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Immigration specialists Newland Chase shed some much-needed light on the new system.

Commencing 6 January 2010, the UK Border Agency started to issue identity cards for foreign nationals (ICFN) to all individuals who fall under the Tier 2 category (skilled workers and their dependants) when they are granted permission to extend their stay in the UK. Previously, identity cards were issued only to students and other Further Leave to Remain categories, but this has now been rolled out for skilled workers.

It is worth noting that these changes do not currently affect individuals who have Indefinite Leave to Remain, British/EU Nationals, or applicants in other immigration categories [who will continue to receive a vignette (stamp) in their passport when they extend their stay].

If a migrant in one of the above categories applies to extend their stay in the UK, they must enrol for their biometrics before the UK Border Agency decides their application. If an application is successful, the migrant worker will be issued with an identity card. Therefore, submitting biometrics alone is not an indication that the application will be approved by the UK Border Agency.

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Migration Advisory Committee publishes first review of Tier 1, Points Based System

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Magrath LLP's Corporate Immigration department reviews the findings of a new Government-commissioned report of the Points Based System for immigration.

The Migration Advisory Committee (MAC) has published its first review of the highly-skilled migration routes (Tier 1) of the Points Based System (PBS) for managed migration.

The 184-page report is a response to the following question posed by the UK Government early in 2009:

What further changes to the criteria for Tier 1 should there be in 2010/11, given the changing economic circumstances?

The report concludes that it is in the best interests of the UK economy and labour market for the current routes under Tier 1 to be maintained. However, MAC has produced a package of recommendations on key areas of Tier 1. These are set out below.

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Working in India as an expatriate

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India is a popular destination, with increasing numbers of executives and business travellers seeking or filling professional positions there every year.

There are many challenges facing expatriates, including culture of work, working conditions, compensation rates, competition, work permits and other issues. We examine below some significant changes to the Indian immigration rules in recent times that affect expatriates and those seeking work in India.

The Ministry of Home Affairs (MHA) in India recently made certain radical changes regarding Indian visa applications specifically relating to business visas, as it was evident that individuals travelling to India on business visits were working in India in direct contravention of the purpose stated on their visas.

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