(b) Peter, one of Linden Limited’s non-executive directors, having lived and worked in the UK for most of his adult life, sold his home near London on 22 March 2006 and, together with his wife (a French citizen), moved to live in a villa which she owns in the south of France. Peter is now demanding that the tax deducted from his director’s fees, for the board meetings held on 18 April and 16 May 2006, be refunded, on the grounds that, as he is no longer resident in the UK, he is no longer liable to UK income tax. All of the company’s board meetings are held at its offices in Cambridge. Despite Peter’s assurance that none of the other companies of which he is a director has disputed his change of tax status, Damian is uncertain whether he should make the refunds requested. However, as Peter is a friend of the company’s founder, Linden Limited’s managing director is urging him to do so, stating that if the tax does have to be paid, then Linden Limited could always bear the cost. Required: Advise Damian whether Peter is correct in his assertion regarding his tax position and in the case that there is a UK tax liability the implications of the managing director’s suggestion. You are not required to consider national insurance (NIC) issues. (4 marks)