The tax status of non-domiciled taxpayers who live in the UK or UK domiciled individuals who live overseas has a significant effect on their tax position.
A taxpayer is usually treated as resident in the country (or tax jurisdiction) in which they are based. As residence is often looked at on a year-by-year basis, a taxpayer’s residence status can therefore be different from one tax year to another.
A person acquires a country of domicile at birth and usually inherits the domicile status of their father. It is difficult to change this status without making conscious and deliberate steps to do so. It is possible to live in a country for many years without necessarily becoming domiciled in that country.
The residence or domicile status of a person becomes relevant when HMRC are carrying out a tax investigation and are looking into whether income or gains earned overseas should be taxable in the UK or whether a person who claims to be non-UK resident is in fact resident in the UK for tax purposes.
Your status affects how you’re taxed.
We help clarify your position — especially in cases involving offshore assets — and defend against HMRC challenges.
