UK tax liability
UK tax liability

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • UK tax liability
  • Residence and domicile
  • The UK tax structure
  • Income tax
  • Capital gains tax
  • CGT on disposals of residential property by non-residents before 6 April 2019
  • CGT on disposals of UK property from 6 April 2019
  • National insurance contributions
  • Relief for foreign tax paid
  • Inheritance tax
  • More...

UK tax liability

This Practice Note briefly summarises the main UK taxes which may apply to UK resident individuals, including income tax, capital gains tax (CGT), inheritance tax (IHT), value added tax (VAT), national insurance contributions (NICs), the annual tax on enveloped dwellings (ATED), non-resident CGT and stamp duty land tax (SDLT).

Residence and domicile

From 6 April 2013 UK tax liability depends on two key factors:

  1. residence, and

  2. domicile

Residence refers to the individual's tax status on a year by year basis and domicile is the place which a person regards as his true home.

A person coming to the UK other than for a one-off short visit, should thus consider whether they are resident and/or domiciled here. These concepts are explained in the Residence after 5 April 2013 and Domicile, Practice Notes.

An individual may also acquire a UK deemed domicile for tax purposes. For information on the rules that applied until 5 April 2017 and from 6 April 2017, see Practice Notes: Deemed domicile for tax before 6 April 2017 [Archived] and Deemed domicile for tax from 6 April 2017.

The Pre-entry planning Practice Note provides details on the residence questions faced by new arrivals.

If the individual was resident in the tax year 2012–13 you will also need to consider the ordinary residence rules. Until 5 April 2013, ordinary residence was another key factor to consider when deciding

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