Residency And Domicile Flashcards
Dom and non don spouses
Exempt transfers out of uk limited to £325,000 lifetime limit
Automatic overseas test
An individual is non resident if they meet one of these
Resident in 1/3 previous tax years and spend fewer than 16 days in the uk
Non resident in 3 previous tax years and spend fewer than 46 days in uk
They work full time outside the UK with no significant breaks and spend fewer than 91 days in the UK in the tax year and the number of days worked for more than 3 hours in the uk is less than 31
Automatic UK test
Spend 183 days or more in uk
At least one period of 91 consecutive days when had home in uk
At least 30 of these 91 days fall in the tax year when you have a home in the uk They have only one home and that home is in the UK or if you have two or more homes all are in the UK
They work full time in the UK with no significant breaks over 365 days/ more than 75% of total number of days in the 365 day period when you do more than 3 hours work are days when you do more than 3 hours in the uk
Domicile of origin
Acquired at birth
Domicile of dependence
When a child is born to a UK domiciled parent. This retained till 16 and child can change.
Deemed domicile
Individual who’s treated Uk domicile Even though they are still non domicile
Former domiciled residents (FDR)
They return to the UK and become resident when they have previously been so.
Arising basis
Individuals liable for UK tax on all income and gains in the world
Remittance basis
Individuals only liable to uk tax on income and gains in the UK.
Individuals who became deemed domicile under the 15/20 rule can lose status if?
Can loose status for IHT purposes after being non resident for four tax years
How to loose your domicile
You would have to break all ties with the UK
Even if have a bank account/property/investments, HMRC would still consider a domicile
To renew Deemed domicile status
Must be non resident for six consecutive tax years
Main points of double taxation agreements (DTA)
The individual’s country of tax residence tends to have the right to tax earnings from employment.
The DTA aims to avoid individuals being taxed twice.
Tax paid in one country can usually be offset as a credit against tax paid in the second one
After 6 years residence a non domicile will be switched to arising basis unless?
They pay the remittance basis charges. Until their 15th year.
Statutory residence test order
Automatic overseas test
Automatic UK test
Sufficient ties test
