The UK Tax Office Publishes Guidance Notes for on Residence, Domicile and Remittances
There have been significant changes in the UK taxation of non domiciled people over the past four years. The new HMRC Guidance notes will be welcomed by both professional advisors and clients, all the more so if they signify an end to the era of change! While the notes are extensive (85 pages) they are no substitute for professional advice.
For the uninitiated domicile and residence play a significant part in determining an individual’s liability to UK tax. Domicile remains a nebulous concept which attempts to establish where an individual’s homeland / origins are. Residence remains a physical test of presence which has recently become more defined and can be more easily established – see our news item of 8th July 2013. If for UK tax purposes you are non UK domiciled or have a special UK residence position you may be taxable to UK tax on what is known as the remittance basis. Broadly this means you have to pay tax on money/goods that you bring to the UK.
All three definitions can materially affect an individual’s liability to UK tax and remain a significantly technical area to explore with professionals.
You can view the HMRC guide here