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All aboard or all abroad?

All aboard or all abroad?

Whether you have chosen to move to the UK and intend to stay or have decided to move out of the UK overseas, your residence and domicile status are critical in understanding your tax position.

Residence & domicile

Where you reside and your domicile can dictate the tax regime under which you fall. Specifically, where you reside and your domicile will impact whether you pay any UK tax on your overseas income, gains and estate on death.

Over recent years we have seen significant changes. With careful attention to your residence and domicile we can explain your tax position, the ability to claim for relief of double taxation and any opportunities to plan your affairs more tax efficiently.

If you are looking to leave the UK, return to the UK, spend longer in the UK, spend periods of time abroad or work overseas, you will need to understand how these rules impact you.

Residence

From April 2013, the Statutory Residence Test was introduced to measure whether an individual was resident in the UK or not.

While the old rules simply looked at the number of days you spent in the UK, the new rules now consider your ‘ties’ to the UK and overseas. If your situation is straight forward and you are in the UK for over 183 days a year with your home here, you will likely be UK resident. If you are in the UK for less than 16 days, or you work overseas and spend fewer than 91 days in the UK with less than 30 working, you will likely be automatically non-UK resident.

However, where your case is not straight forward we can help you check your position.

Domicile

From 6 April 2017, new deemed domicile rules came into force. These mean if you are not domiciled in the UK, under English common law, you are now treated as domiciled in the UK for all tax purposes if you:

  • have been UK resident for 15 out of the last 20 years
  • if you were born in the UK, the UK was your domicile of origin; you were resident in the UK for 2017 to 2018 and later years (formerly domiciled rules)

The rules are complex and we can access your situation and advise you to ensure you are maximising reliefs available to you.

Contact our Tax team to discuss your residence and domicile position today.

Speak to an expert

Jennie-Brown

Jennie Brown

Director of Private Client Services

Kettering

nicola_harte

Nicola Harte

Assistant Manager

Banbury

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