The proof of a book addressed to professional practioners in any field is how it will appeal not only to its target market, but beyond. On that criterion, James Kessler’s "Taxation of Foreign Domiciliaries" passes with flying colours. It is worth having just for its devastating demolition of the definition of "shadow director" in the "Deverell" judgement, although even without that it is packed full of material organised in such a way that the most esoteric aspects of the impact of UK tax law on the non domiciliary are identified, analysed and explained.

His commencing chapter addresses the prospects for change in the context of the history of recent events, and then goes on to make a number of valuable planning suggestions in anticipation of any changes in prospect. In his historical preamble, Mr. Kessler does not go back as far as 1971, when a clause in Dennis Healey’s Finance Bill of that year introduced what is effectively deemed domicile for income tax and CGT. Given that the marginal rates of income tax in that year were 83% for earned and 98% for unearned income, the furore this proposal engendered, with major multi national companies threatening to withdraw their executives, meant that the offending clause was removed before the Bill became law.

With the threat of changes to the law applying to the non-domiciliary still very much alive, Mr. Kessler understandably covers in depth the consequences of change in status. It is therefore slightly disappointing that on the subject of gains remitted after acquisition of United Kingdom domicile, he does not explain why the Revenue’s view, set out in Capital Gains Tax Manual at paragraph 25311, that unremitted gains remain subject to the remittance rule, would be likely to stand if challenged. He says that the contrary view is arguable, and is a more natural reading of section 12, Taxation of Chargeable Gains Act 1992. Whilst this is at present probably an esoteric question, it may become only too real if some kind of "deemed domicile" for capital gains tax were to be introduced.

The main body of the text commences with a useful summary of the law and Revenue practice in "determining" domicile, although, as the Revenue point out, it gives only a practical view on which they will proceed; only the courts can give a definitive ruling. Mr. Kessler asks whether the Revenue is bound by any informal ruling it may give but leaves unasked or unanswered whether if the Centre for Non Residents have given an informal ruling, that would bind the Capital Taxes Office in the case of the same question applying for inheritance tax. This is always a difficult area and, where offshore trusts are in point, can be a very weighty one. A minor omission is in relation to the status of married women who are United States nationals and who before 1 January 1974 married a United Kingdom domiciliary, whose United States domiciled status is protected under the United Kingdom/United States double tax agreement. Indeed, the whole interface between non-domiciled status and double tax agreements is not covered at all, which is perhaps the only significant omission from the book. The most common provisions - not to be found in the United Kingdom/France and United Kingdom/New Zealand treaties- will deny treaty protection to a United Kingdom resident non-domiciled individual in respect of income arising in the treaty territory but not remitted to the United Kingdom (so exposing it to United Kingdom tax); the provision typically does not apply to capital gains tax, which it is understood has been confirmed by the Dutch courts so far as concerns the Netherlands.

The chapter on the Schedule D remittance basis alone warrants the purchase of this book- nowhere else can such an exhaustive and practical exposition of this complex subject be found. In relation to debts and section 65(8), Taxes Act 1988, it would have been useful to have had a comment on the question of a guarantee (to another offshore bank which provides a loan to the individual) from an offshore bank or other institution which holds unremitted funds.

One of the minor delights of Mr Kessler’s book is his thorough analysis of the situs rules both for inheritance tax and for capital gains tax - his historical background to specialty debts and the different approach to them in Scotland is a pleasure to read. The idiocy of locating non specialty debts in the country of the debtor for inheritance tax, but in that of the creditor for capital gains tax is passed over without comment, but what comment could one make?

The careful analysis of the possible limitations of Marshall v Kerr [1994] STC 638 to "Anglo Saxon" estates whose administration is incomplete warrants careful study. As Mr. Kessler says:"the author has been expecting further litigation on this subject since1994 (although it has not happened yet and the question may remain forever unresolved)".

Another welcome exposition, whose impact is by no means limited to non-domiciliaries, is the analysis of the application of Schedule D, Case 1 to many activities carried on outside the United Kingdom. Ogilvie v Kitton, although nearly 100 years old, is a case whose impact is still felt today. Tax Inspectors in the United Kingdom bite their tongues when presented with Schedule D, Case 1 loss claims in relation to overseas businesses conducted by United Kingdom resident individuals.

There is a masterly chapter on all the issues in relation to life policies and contracts, save only for a surprising omission of any reference to the fact that gains on such policies are assessable on an arising basis because they are chargeable under Schedule D, Case VI.

Mr Kessler is renowned for the clarity of his exposition, allied to the depth of his knowledge, and this volume will no doubt add to that well-deserved reputation. This book is an essential for any practitioner in the field, and a valuable addition to every tax library.