Tax implications of new domicile rules

KEY POINTS

• The rules on domicile changed on 6 April 2017.
• Capital gains on UK residential property are taxable in the UK regardless of the individual’s residence or domicile status.
• A UK-domiciled individual is taxable on their worldwide income and gains for any year in which they are UK resident.
• A formerly domiciled resident is deemed to regain UK domicile when they become UK resident again.
• An individual who acquires a domicile of choice abroad remains in the UK inheritance tax net for the next three years.
• The dangers of accidental remittances.

Domicile is one of the defining characteristics used to determine the UK taxation treatment of individuals’ overseas assets income and gains. My previous article – ‘Home is where the heart is’ (Taxation 24 May 2018) –...