Residence And Domicile

Question 1

What is residence?
What is domiciled?

Answer 1

Where someone is residing that year.
Where someone considers their permanent residence.

Question 2

Who is definitely not a resident?

Answer 2

Present in the UK for fewer than 16 days.
Present in the UK for fewer than 46 days, having not been a resident for 3 years
Working full-time overseas and present in the UK for fewer than 91 days and working in the UK fewer than 31 days.

Question 3

For resident purposes, how long is a working day?

Answer 3

3 hours

Question 4

Who is definitely is a resident?

Answer 4

Present in the UK for 183 days
Have a home in the UK (owned or rented) and meet other requirements.
Have full-time work in the UK. (365 days can straddle the tax year.)

Question 5

What are the conditions for a home in the UK meeting residency status?

Answer 5

Have a home in the UK 91 days, consecutivly, 30 from the same tax year.
Having a home abroad lived in less than 30 days in the 91-day period.

Question 6

What are the tests called that determine if someone might be a resident?

Answer 6

Significant ties.

Question 7

What are the significant ties questions?

Answer 7

Spouse, or minor children in the UK
Made use of UK accommodation
Doing substantial work in the UK- 40 days or more
Spending more than 90 days in either of the last 2 years
Spending more time in the UK than any other country

Question 8

What is considered being a previous resident?

Answer 8

Resident in one of the last 3 years

Question 9

What are the number of conditions to be met for significant ties to determine residential status?

Answer 9

Question 10

When is someone considered have been in the UK for a day?

Answer 10

If they are there at midnight.

Question 11

When would someone who has been in the UK not been in the UK at midnight not be considered to have been there?

Answer 11

When the individual has 3 or more ties, has been a UK resident in any of the last tax 3 years, and has been present in the UK for more than 30 days without being present at midnight.

Question 12

What conditions would lead to splitting residency for the year?

Answer 12

Leaving the UK for full-time work. (Resident until leaving)
Coming to the UK for full-time work (Resident from arriving)
Leaves the UK to live abroad- ceases having UK home. (Resident until leaving)
Comes to live in the UK for full-time work or meeting the UK home test (Resident from arriving)

Question 13

What is domicile set as at birth in england and wales?

Answer 13

The same as the fathers.

Question 14

What is domicile set as at birth in Scotland?

Answer 14

The country where the child is most closely associated.

Question 15

When can domicile be chosen?

Answer 15

At 16 years old.

Question 16

What evidence will be looked at for a change in domicile?

Answer 16

Physically moving to another country.
Buying a house in another country and not keeping one in the UK
Setting up a business in another country.
Having your family in another country
Arranging to be buried in another country.

Question 17

What did the HMRC bring in in April 2017

Answer 17

Special rules to prevent anyone still living in the UK claiming non-dom.

Question 18

Should a domicile of choice be abandoned, what is the effect?

Answer 18

It reverts back to the original.

Question 19

What happens to women married before 1974 regarding domicile?

Answer 19

They automatically took on their husbands unless she specifically elle to a different place.

Question 20

What is deemed domiciled?

Answer 20

Being treated as domiciled if a certain amount of time is spent in the UK, when actually being domiciled elsewhere.

Question 21

How many years lead to being deemed domiciled?

Answer 21

Spending 15 out of 20 tax years starting on the 16th.

Question 22

What happens for IHT if deemed domiciled?

Answer 22

Wordwide assets come come into tax paid in the UK.

Have to live outside the UK for 5 years to return to normal.

Used to be 3 years.

Question 23

What happens for IHT if deemed domiciled?

Answer 23

Wordwide assets come come into tax paid in the UK.

Question 24

What happens if deemed domiciled for income and capital gains?

Answer 24

Worldwide income and capital gains are liable in the UK and can not apply for a remittance basis.

Question 25

What can a couple who one is domiciled and the other is non-domed do on death of the domiciled.

Answer 25

Elect to become domiciled to benefit from spousal transfer.

If no election tax is only paid on UK based assets but can only inheret £325000

Question 26

Discribe UK resident and domiciled

Answer 26

Liable to income tax, capital gains and IHT worldwide
Liable to income tax on 100% overseas pensions (previously 90%)

Question 27

Discribe domiciled but not resident

Answer 27

No income tax for workputside the UK. Liable to income tax on UK work unless incidental to main role. Investment income escapes tax.
No capital gains if not resident for 5 years (usually) expect residential property.
Liable to IHT worldwide

Question 28

Describe UK resident but not domiciled.

Answer 28

Remittance basis
Annual charge

Income tax on arising in the UK or remited. Worldwide basis when remittance is not claimed.
Capital gains due for those made in the UK worldwide if no remittance.
IHT only on UK assets.

Question 29

Discribe remittance

Answer 29

For resident non-doms income and CGT is only due on assets and income brought here when remittance is claimed.

Question 30

Describe the annual charge

Answer 30

A charge on long-term residents claiming remittance on top of tax.

7-9 tax years £30,000
12-14 £60,000

Question 31

How much foreign gains will prevent the annual charge?

Answer 31

£2000

Question 32

Describe non-resident non domiciled.

Answer 32

Only taxed on UK Inc
Investment income, work conducted in the UK or income from the UK
Capital gains due in UK property
IHT on UK assets

Question 33

How is residence and domicile assessed?

Answer 33

By self assement or HMRC will deem the resident

Question 34

Discribe overseas trusts?

Answer 34

May become liable to UK tax if it has UK resident trustees
CGT is due on UK resident beneficiaries, if not taxable on settlor
IHT into offshore trust is treated as per transfer rules
Excluded property trusts allow non dom persons to keep there non UK assets from UK IHT