Lovin’ this article, but need more advice on your tax affairs?
Get in touch today.
The press might want us to think it was another one of those loopholes exploited by high net worth individuals. The fiends.
However, the use of the L-word in relation to domicile, and the tax consequences flowing from a non-domicile status, is absolute nonsense.
So, what is domicile?
Domicile is a concept of general international law. It is the place where one permanently or indefinitely resides. It might be called someone’s home.
Every person has a domicile and only one domicile.
Types of domicile
There are three types of domicile.
Firstly, one starts out life by inheriting a domicile of origin from, usually, one’s father. This will form the bedrock of a person’s status. It can be supplanted by the acquisition of a (secondly) domicile of choice which through (i) physical presence in a jurisdiction; and (ii) the intention to remain there permanently or indefinitely.
Finally, one might also have s domicile of dependence – one’s domicile will change with one’s father until such time as the child reaches age 18.
What about those tax advantages?
The tax advantages flowing from one’s non-dom status are not an accident.
They were clearly created specifically by Government. These rules have been significantly revamped in 2008 and, more recently, with effect from 6 April 2017.
As such, the normal use of one’s non-domicile status is clearly not tax avoidance territory.
For more information on these tax advantages please view our short video on this.
If you have any queries about you, or your client’s domicile status, or would like to find out more about non dom tax, then please do get in touch.
Due to demand for high quality specialist tax advice ETC Tax has seen rapid growth over the past few years. Today, our tax team is made up of a group of highly experienced Chartered Tax Advisers who between us have amassed a wealth of tax experience, mostly gained at Big 4 and Top Ten accountancy firms. Supported ably by a team of passionate Tax Advisers and committed support staff we enjoy working together to achieve the best possible outcome for our clients, priding ourselves on delivering complex tax advice in a commercial and ‘user friendly’ way.
ETC Tax – ‘Making the complex simple’
Call or email us any time or, simply fill out the contact form below and a member of our team will be in touch.