Taxation - Residence and Domicile
Your liability to UK tax depends on your Residence, Ordinary Residence and Domicile.
Normally people who are born and bred in the UK of British parents, and who are permanently living here, are UK resident, Ordinarily Resident and Domiciled, and thus need not concern themselves with the complexities of this area.
But if your situation is not so simple, then note that the HM Revenue and Customs's own basic guide is a 50 page printout. So what follows is the most elementary of overviews. If you think any of it might be important for you, contact us.
Residence - Where you live. You will be deemed UK Resident if you are in the UK for 183 days in any one tax year.
Ordinary Residence - Where you live normally, year after year. 91 day rule - mainly relates to people who leave the UK, and are claiming to be non resident, but still make trips back to the UK. In short, (lots of important detail omitted), if you average more than 91 days a year in the UK, you can expect to be considered Resident in the UK.
Domicile - Where your roots are. Domicile is quite complex. Essentially you acquire a Domicile at birth, normally from your father and that stays with you for life unless you do something drastic to change it.
Tax Aspects
The tax issues can be complex, with Income Tax, Capital Gain Tax and Inheritance Tax all being affected in different ways.
All we can say at the present is that if your circumstances are anything other than the normal born in the UK and living here full time, you should seek advice.
See also further information on
Last updated on May 8, 2008