Residence And Domicile Flashcards

1
Q

What is Residence and what are the rules

A

Given status in a given tax year

Definitely not residence
-present in UK for less than 16 days
-present in UK for less then 46 days if not been resident in last 3 yrs
-wirking full-time overseas and present in UK for less then 91 days

Definitely are resident
-present in UK for 183 days
-have home in UK
Have full time work in UK

Might be resident - 5 ties

-spouse, civil partner or minor child present in UK
-made use if accomodation in UK
-doing substantial work in UK - 40 days or more
-spending More than 90 in UK in either 2 tax years
-spending more more time in UK then any other country.

16-45 days 4 or more ties if pervious resident. Not resident if previously not resident

46-90 3 or more ties if previous resident. If not previous resident then 4 ties

91 to 120 2 or more ties if previous resident, 3 or more if not previous resident

120+ 1 tie if previous, 2 or more if not

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2
Q

Residence - splitting a year

A

Where leave UK for full-time work abroad be resident until leave
Someone who comes UK for full time work be resident when arrive
Leaves UK to live aboard and sells house be resident until leave

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3
Q

What is domicile and what are the rules

A

Domicile means the country you regard as home

Can only have one domicile

In England domicile is set at birth and is normally the father’s domicile until 16 where can be changed

A domicile of choice may be adopted by moving to a new country with intention of permanently leaving uk- evidence if this may inc moving to another country, selling house/buying new one, setting business up in a new country, family in another country, buried in another country.

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4
Q

Deemed domicile

A

Where spend significant time in UK but not actually domicile, authorities less keen in this so bought in deemed dom which means effectively are domicile

Includes IHT, it and cgt

Deemed domicile criteria:

In UK for 15 of 20 previous tax years

If want to lose deemed domicile status would need to leave for 5 years

For cgt and it this means world wide assets now taxed to UK

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5
Q

UK resident and domiciled

A

It - liable to IT on worldwide income
CGT - liable to CGT on worldwide realised gains
IHT - liable to IHT on worldwide assets

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6
Q

UK domicile but not resident

A

IT - will not be due on pay for work which takes place outside the UK

CGT - if non resident (for 5 years) no cgt will be due on disposal other than in residential properties

IHT - liable to UK IHT on worldwide assets

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7
Q

UK resident but not domicile

A

For someone who is resident but not domicile, it is possible to apply for ‘remmitance basis’ taxation status

Means only UK income and capital gains tax will apply, where left outside UK no tax will apply

Because of this there is a annual charge where government stop abuse to system

Annual charge
30,000 where resident for 7 of last 9 years
60,000 where resident in UK for last 12 of 14 years

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8
Q

Non resident and non domicile

A

Income tax - only due on UK investment income
CGT- only on UK residencial property
IHT- due on UK based assets

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9
Q

Responsibility for assessing residence and domicile

A

UK operates a system of self assessment, each tax payer to make decision regarding residence and domicile

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