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United Kingdom Domicile / Residency

Determining if someone is a resident of the United Kingdom for tax purposes is based on the principle of domicile. The concept of domicile is determined by the UK tax laws and is defined as the country that an individual considers as their permanent home.

To determine if an individual is a UK resident for tax purposes, several factors are taken into account, including:

1. The number of days spent in the UK in a tax year. If an individual is in the UK for 183 days or more in a tax year, they will be considered a UK resident for tax purposes.

2. The nature of the individual’s presence in the UK. If the individual is present in the UK for a continuous period of more than 3 years, they will be considered a UK resident for tax purposes.

3. The individual’s ties to the UK. Factors such as having a home in the UK, a UK bank account or being registered to vote in the UK are taken into account.

4. The individual’s domicile. If an individual has a domicile of origin in the UK, they will be considered a UK resident for tax purposes, regardless of the number of days spent in the UK.

The UK tax laws also recognize the concept of a “deemed domicile” for individuals who have been resident in the UK for more than 15 out of the past 20 tax years. Such individuals will be considered UK resident for tax purposes and will be subject to UK taxes on their worldwide income and gains.

The guidance for determining the domicile of an individual can be found in HM Revenue and Customs (HMRC) guidance RDR3, Residence, Domicile and the Remittance Basis.

It’s important to note that determining domicile can be complex and it’s always recommended to seek professional advice.