Meg Saksida assesses the pitfalls and planning points involved in ascertaining a person’s domicile.
Once a UK resident and domiciled individual leaves the UK and settles in another country, they usually assume (incorrectly) that as they are no longer UK resident under the statutory residence test, they are no longer liable to any UK taxes on any income, gains, or assets outside the UK. Of the seven main taxes (income tax, capital gains tax, National Insurance contributions, inheritance tax, corporation tax, stamp duty land tax, and VAT), in six cases out of seven, they will probably be right.
However, inheritance tax (IHT) does not tax an individual based on their residence. Instead, it focuses on the domicile of the individual in combination with the situs of their estate or the property being
