Non Domicile
Status UK

Domicile is a more complex concept and is relevant for determining whether you are taxed on your worldwide income and gains or just your UK income and gains. If you were born in the UK with a UK domicile of origin or acquired a UK domicile of choice by making the UK your permanent home, you are considered domiciled in the UK.

If you are resident in the UK but not domiciled here, you can claim the remittance basis of taxation. This means that you are only taxed on income and gains brought into the UK rather than on your worldwide income and gains. To claim the remittance basis, you must be resident in the UK for at least seven of the last nine tax years, and you must also pay an annual charge. It is important to note that your residence and domicile status can have significant implications for your tax liability, so it is essential to carefully consider these factors when determining your tax status in the UK.

There are three main types of domicile status: domicile of origin, domicile of dependence, and domicile of choice.

1. Domicile of origin: This refers to the country in which you were born, and it is usually your domicile unless you acquire a different one. For example, if you were born in the UK, your domicile of origin is the UK.
2. Domicile of dependence: This refers to the domicile of your father (or, if your father is deceased, your mother) at the time of your birth. If your domicile of origin differs from your domicile of dependence, you can choose which one to retain.
3. Domicile of choice: This refers to your chosen country as your permanent home. To acquire a domicile of choice, you must physically reside in the country and intend to make it your permanent home.

It is important to note that your domicile status can have significant implications for your tax liability, so carefully consider these factors when determining your tax status. 

You can change your domicile status in the UK by acquiring a new domicile of choice. To do this, you must physically reside in the country and intend to make it your permanent home.

Acquiring a new domicile of choice involves more than just physically living in a place; it requires a level of integration and commitment to the place. Factors that may be considered in determining whether you have acquired a new domicile of choice include the length of your stay in the country, the nature and purpose of your stay, your connections to the country (such as family, property, and business ties), and your plans.

It is important to note that changing your domicile of choice does not automatically change your residence status. You must also consider whether you meet the requirements for being a resident in the UK, typically based on the number of days you spend in the country and the nature of your ties to the UK. Suppose you are considering changing your domicile status. In that case, it is important to carefully consider the implications for your tax liability and seek professional advice to ensure that you correctly comply with UK tax laws.

HMRC has a “deemed domicile” rule that applies to individuals for tax purposes. Under this rule, individuals are considered “deemed domiciled” in the UK if they meet certain conditions, regardless of where their actual domicile (permanent home) is.

Specifically, an individual is deemed domiciled in the UK if they:

1. Have been resident in the UK for at least 15 of the last 20 tax years (this is known as the “long-term resident” test)
2. Were born in the UK and had a UK domicile of origin (this is known as the “birth and domicile” test)

If an individual is deemed domiciled in the UK, they will be subject to UK tax on their worldwide income and gains, regardless of where the income or gains are earned or arise.

The deemed domicile rule can have significant tax implications for individuals who have lived or worked abroad or have a foreign domicile of origin but have spent a substantial amount of time in the UK. Therefore, it is important for individuals to understand their deemed domicile status and how it may affect their tax obligations in the UK.