˾ҹ

Residence and domicile ― effect on tax liability

Produced by Tolley in association with
Employment Tax
Guidance

Residence and domicile ― effect on tax liability

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

The extent to which an individual is subject to tax in any country is normally determined in part by reference to their residence status in that country. In the UK, there is an additional consideration. It has long been a feature of UK taxation that an individual’s liability to UK tax has been determined by reference to both their UK residence and domicile status. As mentioned below, non-domiciliaries are able to use the remittance basis of taxation in the UK, which means that their foreign income and gains are not taxable in the UK unless they are brought to the UK.

This guidance note looks at the effect that residence and domicile has on the taxation of an individual’s employment income, investment income and capital gains.

In Spring Budget 2024, the Chancellor announced that the remittance basis would be abolished from 6 April 2025 and that the UK taxation of worldwide income and gains will be based on conditions relating to an individual’s residence status rather than their domicile. This

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

Lee McIntyre-Hamilton
Lee McIntyre-Hamilton

Tax Partner at Keystone Law , Employment Tax


Lee is a tax specialist and Partner at Keystone Law. He has been advising on global mobility and international employment tax matters for more than 20 years. He provides support to employers and their globally mobile employees. He also provides personal tax advice to globally mobile executives, including non‐resident directors. Lee’s expertise covers the employer and employee tax, social security and payroll implications of cross‐border moves. This includes employer and employee tax compliance, international share schemes tax, tax on pensions for mobile employees, the taxation of cross‐border termination payments and operating tax equalisation arrangements. Lee also provides advice on the tax aspects of global mobility and globally remote working policies and processes. Lee also covers international employment tax matters such as tax and social security for globally remote workers and the assessment of employment status for tax purposes. International organisations of all sizes turn to Lee for tax advice, across various sectors, including social and humanitarian enterprises, education, life sciences and pharmaceuticals. Lee is a member of the HMRC Expatriate Tax technical forum and regularly speak at industry events on global mobility and international employment tax matters. He is also the resident global mobility tax expert for the Global Payroll Association and provides tax training to payroll specialists on matters such as tax residence, international social security and short term business visitors.

Powered by
  • 08 Mar 2024 12:20

Popular Articles

Non-business expenses

Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The

14 Jul 2020 12:16 | Produced by Tolley Read more Read more

Maintenance payments

Maintenance paymentsMaintenance payments are payments made by a taxpayer to their former or separated spouse / civil partner for the maintenance of that person or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the

14 Jul 2020 12:12 | Produced by Tolley Read more Read more

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more Read more