Residence and Domicile Flashcards
What makes somebody automatically non-UK resident ? (3)
- in UK <16 days in tax year
or - not resident in past 3 tax year and in UK < 46 days
or - Works fulltime overseas and in UK <91 days and working <31 days in UK
What makes someone automatically UK resident? (4)
- in UK >183 days in tax year
or - if they work in the UK full time
or - If they have a home in UK for at least 91 days (30 in tax year) and present in it for 31 days in tax year
and - In foreign home for <31 days in tax year
Explain the Split-year Treatment
Tax year can be split if:
- leaving/entering UK for full time work
- leaving UK and doesn’t have home in UK
- coming to UK and meeting UK home test
- spouse or partner if leaving with partner who is leaving for full time work overseas
What are the UK Ties tests and when do they matter?
- If don’t meet any Automatic tests
- Spouse resident in UK
- Accommodation in UK
- Substantive work in UK (40+ days)
- > 90 days in UK in past 2 years
- More time in UK than any other country
it then depends on number of days and if they have previously been a resident as to how many ties they have to meet
When are you Deemed Domicile
- if resident in UK for 15/20 of last tax years
- if born in UK w/ UK origin domicile and return to the UK
Tax position of UK Domiciled Individual
UK Resident:
- Income Tax - on world wide earnings
- CGT - On world wide Gains
- IHT - Yes
Non-UK Resident:
- Income Tax - only on UK earnings
- only if temporary (<5 years) non-residents
- IHT - Yes
Explain the Remittance Basis
- Only taxed on money brought into the UK to benefit relevant person
- Tax charge to use remittance basis if:
- £30,000 if resident 7/9 tax years
- £60,000 if resident 12/14 tax years
- Not eligible for PA or CGT exempt amount
Tax position of Non-UK Domiciled UK Resident
- Unless on remittance basis
- Income Tax - Income arising in the UK
- CGT - Gains that arise in the UK
- IHT - only on property in the UK
