Topic 1 Domicile & Residence

Question 1

Residence is definitely as what?

Answer 1

Where a person is living for tax purposes in a particular year

Question 2

Domicile is defined as what?

Answer 2

The country someone calls home

Question 3

Which tax would would a domicile of the UK normally pay?

Answer 3

• Income tax
• Capital Gains Tax (CGT) (on worldwide income)

Question 4

Which tax would a domicile of the UK normally be liable to?

Answer 4

Inheritance Tax (IHT)

Question 5

The Statutory Residence Test (SRT) determines what?

Answer 5

Whether a person is residence for tax purposes

Question 6

Which Residence test is this?

• Spend less than 16 days in the UK in that tax year
  Non UK resident for in any of the previous 3 tax years & spent less than. 46 days in the current tax year
• Work overseas spent less than 91 days in the UK in the current tax year with less than 31 working
• Spent less than 46 days in the UK in the current tax year & non residence in the last 2 years

Answer 6

Automatic Overseas Test

Question 7

Which Residence test is this?

• Have a home in the UK for 90 days (30 days in current tax year)
• Live in the UK for 365 days + in current tax year

Answer 7

Automatic UK Tests

Question 8

What percentage of the days must a person do more than 3 hours work to qualify as a UK resident?

Answer 8

75%

Question 9

Which Residence test is this?

• Family tie
• Accommodation tie
• Work tie
• 90 day tie
• Country tie

Answer 9

Sufficient ties test

Question 10

Which Sufficient ties test tie is this?

• Spouse or Civil partner
• Co-habiting partner
• Minor child

Answer 10

Family tie

Question 11

Which Sufficient ties test tie is this?

• Individual has UK accommodation available to them for a period of at least 91 days

Answer 11

Accommodation tie

Question 12

Which Sufficient ties test tie is this?

Individual works in the UK for more than 3 hours a day for at least 40 days in the tax year

Answer 12

Work tie

Question 13

Which Sufficient ties test tie is this?

Individual has spent more than 90 days in the UK for either or both of the two previous tax years

Answer 13

90 day tie

Question 14

Which Sufficient ties test tie is this?

UK is where the invidual has spent the greatest number of days in the tax year

Answer 14

Country test

Question 15

If resident in 1 or more of 3 of the previous tax years how many ties would a person who has spent 16-45 days of the current tax year would they need?

Answer 15

4 or more

Question 16

If resident in 1 or more of 3 of the previous tax years how many ties would a person who has spent 45-90 days of the current tax year would they need?

Answer 16

3 or more

Question 17

If resident in 1 or more of 3 of the previous tax years how many ties would a person who has spent 91-120 days of the current tax year would they need?

Answer 17

2 or more

Question 18

If resident in 1 or more of 3 of the previous tax years how many ties would a person who has spent 121-182 days of the current tax year would they need?

Answer 18

2 or more

Question 19

If resident in the UK for none of the previous tax years how many ties would a person who has spent 46-90 days of the current tax year would they need?

Answer 19

4

Question 20

If resident in the UK for none of the previous tax years how many ties would a person who has spent 91-120 days of the current tax year would they need?

Answer 20

3 or more

Question 21

If resident in the UK for none of the previous tax years how many ties would a person who has spent 121-182 days of the current tax year would they need?

Answer 21

2 or more

Question 22

What is the “Domicile of Origin”?

Answer 22

Domicile acquired at birth (father domicile at birth of parents married. Mother’s if not)

Question 23

At what age can a person change their domicile?

Answer 23

16

Question 24

What is the “Domicile of choice”?

Answer 24

When an adult shoes intention to make somewhere else home

Question 25

Do UK residences need to pay tax on all income & unearned worldwide?

Answer 25

Yes

Question 26

Individuals who become non residents usually have no liability for income tax on overseas employed income.

True or False

Answer 26

True

Question 27

Individuals who become non residents usually have no liability for income tax on UK savings and investments

True or False

Answer 27

True

Question 28

For a non-resident to be free of CGT how many year would they need to be a non-resident?

Answer 28

5 years

Question 29

What is “Remittance basis” in relation to income tax?

Answer 29

Where someone who is a UK resident but Domiciled elsewhere elects to pay tax on income and gains from outside the UK when they arise

Question 30

How does “Remittance basis” tax work?

Answer 30

Where a person has overseas Income or gain in a tax year where they are residents in the UK

Question 31

The annual tax charge to use the remittance basis for a person who has been resident in the UK for 7 out of the last tax 9 years is how much?

Answer 31

£30,000

Question 32

The annual tax charge to use the remittance basis for a person who has been resident in the UK for 12 out of the last 14 tax years is how much?

Answer 32

£60,000

Question 33

If a person does not use the “Remittance Basis” will they be subject to CGT on all worldwide assets?

Answer 33

Yes

Question 34

If a person is not UK Domiciled but lives in the UK what does this mean for IHT purposes?

Answer 34

They will only pay IHT on UK residential property

Question 35

Under what circumstances could someone be present in the UK at midnight and this not count towards there UK residency?

Answer 35

• Airline passenger (in transit)
• Medical circumstances

Question 36

Does someone who is a UK resident but Domiciled elsewhere who uses the “Remittance Basis” still pay UK tax?

Answer 36

Yes

Question 37

From the 16th tax year of being a UK resident what happens to the their Non-UK Domicile status?

Answer 37

They are deemed UK Domicile for tax purposes