PT 48 - Domicile

Question 1

What are the three types of domicile

Answer 1

Domicile of origin
(Taken from father at birth (or mother if unmarried))

Domicile of dependence
(Domicile of child under 16 will follow father / mother as above)

Domicile of choice
Can establish a new domicile by severing all ties with the old country and permanently settling in a new country

Question 2

In establishing whether a new domicile of choice has been created, HMRC will look at:

Answer 2

• the intentions of the individual;
• their permanent residence;
• their business interests;
• their social and family interests;
• ownership of property; and
• the form of any Will they have made.

A balance of probabilities approach is taken

Question 3

Case law has established that to lose one’s domicile

Answer 3

one must sever all ties with the ‘old’
country and establish a permanent residence in the ‘new’ one. Individuals who retain
family, business, property and social ties with the ‘old’ country are not likely to be
successful in arguing that they have abandoned their previous domicile.

Question 4

Two particular groups of individuals who are non-UK domiciled under general law are
deemed to be domiciled in the UK. These are:

Answer 4

1. formerly domiciled residents (Condition A);
2. long-term residents (Condition B).

Question 5

A formerly domiciled resident (FDR) is an individual who:

Answer 5

• was born in the UK;
• had a UK domicile of origin; and
• is resident in the UK for the tax year.

Question 6

A long-term resident is

Answer 6

is an individual who has been UK resident for at least 15 of the previous 20 tax years.
A split year counts as a year of residence.