The extent to which an individual is subject to tax in any country is normally determined in part by reference to their residence status in that country. In the UK, there is an additional consideration. It has long been a feature of UK taxation that an individual’s liability to UK tax has been determined by reference to both their UK residence and domicile status. As mentioned below, non-domiciliaries are, to 2024/25, able to use the remittance basis of taxation in the UK, which means that their foreign income and gains are not taxable in the UK unless they are brought to the UK.
This guidance note looks at the effect that residence and domicile has on the taxation of an individual’s employment income, investment income and capital gains.
In Autumn Budget 2024, the Chancellor confirmed earlier announcements that the non-UK domicile of taxation would be abolished from 6 April 2025. Thereafter, the UK taxation of worldwide income and gains will be based on conditions relating to an individual’s residence status
Spouse exemption from inheritance taxArguably, the most important inheritance tax exemption is the spouse exemption from inheritance tax.There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’).
Incentives, awards and prizesIntroduction ― incentives, awards and prizesEmployers may use a variety of methods to reward and encourage employees in their work. These are commonly known as incentives, awards or prizes. For the purposes of this note, the term ‘award’ will be used to cover all
Foreign self-employmentTrading in another jurisdiction involves many issues, only some of which involve taxation. Advice should be taken, not only in relation to tax but on the wider business implications. For an overview of the points to consider for certain jurisdictions see Tolley's Global