Residency and domicile Flashcards
1
Q
Automatically resident
A
- In the UK for 183 days or more in the tax year
- Individual has a home in the UK and:
– has the home for 91 consecutive days living in it for 30 days
– if has home overseas, must be present in that home for fewer than 30 days - Carrying out full time work in the UK (for 365 days)
2
Q
Automatically non-resident
A
- In the UK for fewer than 16 days in the tax year
- Non-resident in any of last 3 tax years and in UK for fewer than 46 days in tax year
- Working full time overseas, providing they:
– are in the UK for fewer than 91 days in the tax year
– spend fewer than 31 days working in the UK in the tax year
3
Q
Deemed domicile
A
- resident in the UK for at least 15 out of the previous 20 tax years
4
Q
Breaking deemed domicile
A
- For IHT it is 4 consecutive tax years
- For Income Tax and CGT it is 6 consecutive tax years
5
Q
UK res/dom
A
- Income Tax on worldwide income
- CGT on worldwide gains
- IHT on worldwide assets
6
Q
Non-res/dom
A
- No income tax on foreign employment
- No CGT (unless temporary non-res)
- IHT on worldwide estate
7
Q
UK res/non-dom
A
- No income tax on overseas income unless remitted back to UK
- No CGT unless remitted back to UK
- IHT on UK situs assets
8
Q
Non-res/non-dom
A
- Income tax on UK earnings and investments
- However, remittance basis loses allowances
- No CGT unless temporary non-res
- IHT on UK situs assets
9
Q
Temporary non-resident
A
- If had sole UK residence for part of 4 of last 7 tax years
- Non-resident in between 2 periods of UK residence
- Total non-resident period less than 5 years
- If temporary non-res, gains made during non-res period are subject to UK CGT if remitted back to the UK
10
Q
Remittance basis
A
- Claimed annually via self-assessment
- Once UK resident for 7 of the last 9 tax years, £30,000 annual charge to claim basis (unless income and gains below £2,000)
- Increases to £60,000 once UK resident for 12 of last 14 tax years
- Lose all personal allowances
