Meg Saksida looks at both common law and tax law domicile.
For income tax and capital gains tax (CGT) purposes, a taxpayer's residence is crucial in establishing their taxability. There is, of course, the possibility of the remittance basis in both of these taxes for non-UK domiciled individuals; but for all intents and purposes, residence is the key.
However, for inheritance tax (IHT) purposes one looks solely at domicile. Those individuals who are UK domiciled are liable to UK IHT on their worldwide assets. Those individuals who are non-UK domiciled are only liable to IHT on assets which they have sited in the UK.
There are two kinds of domicile to consider. The first is common law or ‘general’ domicile. The second is tax law or ‘deemed’ domicile. This article considers both of these in turn, including looking at how long one remains deemed domiciled once one leaves the UK and is
