3. Residence and Domicile

Question 1

Residence Status

Answer 1

A. Automatically non-resident
B. Automatically resident
C. Sufficient ties test

Question 2

Part A: Non-resident

Answer 2

Any of following conditions are met:

• Visit UK for <16 days
• Non-UK resident for past 3 years and visit for <46 days
• Work full time overseas and visit <91 days (no more than 30 of these spent working)

Question 3

Part B: Resident

Answer 3

Not Part A and any of following conditions are met:

• Present in UK <183 days
• Only residence is in UK (must have had the home for 91+ days and lived there for 30+ days)
• Full time work in UK

Question 4

Domicile Definition

Answer 4

Domiciled in country of your permanent home

Person can be resident of multiple countries but domiciled in one

Acquire a domicile of origin at birth (through father) and domicile of choice at 16

Question 5

Non-domiciled

Answer 5

A non-domiciled individual is deemed domiciled for tax if UK resident for 15 out of last 20 years

Individuals born in UK to UK-domiciled parents can no longer be non-domiciled status when a resident of UK

Question 6

Residency and Tax

Answer 6

UK resident is liable to income tax on UK AND overseas income

Non-resident is liable to income tax ONLY on UK income

A UK resident who is not UK domiciled may use ‘remittance basis of taxation’ on their foreign income gains

Question 7

Remittance Basis Charge (RBC)

Answer 7

A tax on unremitted overseas income / gains left outside UK

Payable if individual has >£2,000 unremitted overseas income; and

• they make a claim to use RBT
• 18+
• UK resident

Question 8

RBC amount

Answer 8

• £30,000 if resident of 7/9 past tax years

- £60,000 if resident for 12/14 past tax years

Question 9

Domiciled and IHT

Answer 9

UK-domiciled - IHT applies to their assets wherever they are situated

Domiciled abroad - IHT only applies to UK assets