Chapter 37 – Domicile Flashcards
domicile
Domicile is not defined by statute; it is a concept of common law. Every individual has one domicile. There are three types of domicile these are domicile of origin, domicile of choice and domicile of dependence.
Domicile of origin – an individual acquires a domicile of origin from their father at birth (or their mother if the parents were not married). As long as individuals can sustain an argument that their natural and permanent home is outside the UK and they tend to return to their home country at some point, their non-UK domicile of origin will be retained, even when they are living in the UK.
Domicile of choice – an individual has a legal capacity to acquire a new domicile at the age of 16. If an individual wish to acquire a domicile outside of the UK they must leave the UK and settle permanently in that other country or if living abroad already, intend to remain in that country permanently and indefinitely. They must provide strong evidence that they intend to live permanently or indefinitely to HMRC.
Domicile of dependence – until the individual turns 16 and can choose their domicile, their domicile will follow that of the person on whom they are legally dependent. If the domicile of that person changes, the child will automatically acquire the same domicile.
Deemed domicile – non-UK domiciled individuals can be treated as being domiciled in the UK for taxation purposes if certain conditions have been met. This does not change the individuals domicile under common law, but it does mean that anyone with deemed domicile status will be taxed in the same way as an individual who is UK domiciled under common law.
