Non-resident individuals

The main UK taxes which may apply to non-UK resident individuals are income tax, capital gains tax (CGT), inheritance tax (IHT), value added tax (VAT), national insurance contributions (NICs), the annual tax on enveloped dwellings (ATED) and stamp duty land tax (SDLT). Broadly, UK tax legislation is subject to territorial limits, so that either what is taxed must have a UK source, or the person who is taxed, is resident in the UK. From 6 April 2013, residence for tax purposes is determined by the statutory residence test.

See Practice Note: Introductory guide to UK tax for non-resident individuals for a general introduction to the topic. See also Practice Notes: Residence after 5 April 2013 and Residence of individuals Q&As.

Implications of owning assets in the UK—IHT

The term ‘overseas client’ as used in this overview means:

•
up to 5 April 2025, a client who is non-UK domiciled and not deemed UK domiciled under current rules—see Practice Notes: Domicile for UK tax purposes before 6 April 2025 [Archived] and Deemed domicile for tax from 6 April 2017, and
•
from 6 April 2025, an individual who

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