DFK UK & Ireland

Residence and Domicile - Where Are We Now?

August 2008

Who is affected?

You will be affected by the changes to the residence and domicile rules if;

You are non-domiciled in the UK but have been here for seven consecutive years or more and wish to continue to make use off the remittance basis of taxation; and/or
You are an internationally mobile worker who is non-resident in the UK but do return to the UK on a regular basis.

If you are affected, what do you need to do now?

There are many complex elements to these rule changes and therefore by necessity this alert only points out those tax payers who should seek advice. This is an area where expert advice will be required.

For those of you who are affected, the key things you will need to do immediately (if you have not already done so) are:

1. Determine if you need to pay the new Remittance Basis Charge. If you do, start keeping very careful records of any remittances of overseas earnings to the UK.

2. Review your world-wide tax position and consider if any restructuring is necessary.

3. Review travel plans careful to ensure the new residency rules are being properly considered. In particular keep accurate logs of your journeys to and from the UK.

These are issues that cannot be left to the end of the current tax year. If you are affected by this alert, call us. We will be happy to flesh out the details of the changes and how they affect your personal tax position in the UK.

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