Chapter 41 Deemed Domicile

Question 1

deemed domicile

Answer 1

Two populations of individuals who are non-UK domiciled under general law are deemed to be domiciled in the UK for tax purposes. They pay tax on the same basis as taxpayers who are domiciled under general law. An individual is deemed to be domiciled in the UK if they satisfy either condition A or condition B.
Condition A – formerly domiciled residents, they are individuals who was born in the UK, had a UK domicile of origin and is UK resident for the tax year.
Condition B – non-domiciled individuals who have been UK resident for at least 15 of the previous 20 tax years are deemed to be domiciled in the UK for tax purposes.
Once deemed UK domicile has been triggered, a non-resident period of six tax years is required to break that status. Non-domiciled individuals who return to the UK and resume residence after six tax years have elapsed will start a new period of 15 years during which they can be resident in the UK without being deemed UK domiciled.