The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Fundamental changes to the tax regime for non-domiciled individuals were introduced from 6 April 2017. They involve deeming an individual to be UK domiciled for tax purposes even though he may be non-domiciled in the UK under general law. The rules apply for income tax, capital gains tax (CGT) and inheritance tax (IHT).
Although the tests are slightly different for IHT compared to income tax and CGT (see below), broadly an individual is deemed UK domiciled if he:
has been UK resident for at least 15 out of the last 20 tax years, or
was born in the UK with a UK domicile of origin, subsequently left the UK and acquired a non-UK domicile of choice and later becomes resident in the UK
The 20-year ‘look-back’ period for 2019/20 (for example) is 1999/00 to 2018/19. The ‘clock’ does not start from 2017/18.
Where an individual is deemed domiciled for income tax and CGT, he is taxable in the UK on his worldwide income and gains on an arising basis. The remittance basis, under which the individual can shelter foreign income and gains from UK tax so long as this is not remitted (brought) to the UK, is not available. See the Remittance basis ― overview guidance note.
Where an individual is deemed domiciled for IHT, he is subject to IHT tax on all his worldwide assets. In contrast, non-domiciliaries are liable to IHT only on assets located in the UK.
An individual’s deemed domicile does not affect the domicile status of his children under general law. Children of a father who is non-domiciled in the UK under general law are normally also non-domiciled, even if the father is deemed by these rules to be UK domiciled. Similarly, the child’s domicile status is assessed independently, such that if the child meets the conditions discussed below, he is deemed domiciled in the UK.
This is the first time that the concept of deemed domicile has been introduced for income tax and
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