{"id":4878,"date":"2021-10-06T09:00:00","date_gmt":"2021-10-06T08:00:00","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/?p=4878"},"modified":"2021-10-06T09:30:32","modified_gmt":"2021-10-06T08:30:32","slug":"brexit-residence-domicile","status":"publish","type":"post","link":"https:\/\/my-brains.co.uk\/jackross\/brexit-residence-domicile\/","title":{"rendered":"Brexit: Residence & domicile"},"content":{"rendered":"\n
\"Brexit<\/a><\/figure><\/div>\n\n\n\n

Have you thought about how your status affects the amount of tax you pay after Brexit? <\/h2>\n\n\n\n

For most UK citizens, the question of what should be included on their tax return is easily answered. This is because they are both UK domiciled and UK tax resident. Anyone domiciled and resident in the UK will need to report their worldwide income and capital gains on their return. However, what happens if you are either non-UK domiciled but UK resident? Or UK domiciled but non-UK resident following Brexit? <\/p>\n\n\n\n

The last four years have seen considerable change to tax legislation in this area. The Government seeks to expand the scope of what can be taxed within the UK.<\/p>\n\n\n\n

Non-doms make a significant contribution to UK tax revenues, but their numbers are falling. The decline of this small but significant group of UK taxpayers has been partly attributed to tax changes. <\/p>\n\n\n\n

Brexit uncertainty has also led some to reconsider whether the UK remains an attractive base for them. . But it is not just these wealthy non-doms for whom Brexit has caused a rethink. <\/p>\n\n\n\n

There are a significant number of UK citizens who now live abroad. Some temporarily on work contracts and some who have permanently relocated. More Britons than ever before decided to make Portugal their permanent home following Brexit. In 2020 there was a 34% rise in those living there. This is based on the latest data from the country\u2019s borders and immigration service. <\/p>\n\n\n\n

Now that Brexit has caused us to leave the EU, UK buyers in Portugal qualify for a \u2018golden visa\u2019. This allows visa-free travel throughout Europe. Portugal also has non-habitual resident tax scheme, which offers foreigners low-income tax rates for those able to spend at least half the year there. This is thought to have prompted more UK residents to make the move because of Brexit. <\/p>\n\n\n\n

UK-domiciled taxpayers<\/h2>\n\n\n\n

Someone who is domiciled in the UK is an individual whose permanent home is in the UK. That person may have more than one tax residence, but they can only have one domicile at any given time.<\/p>\n\n\n\n

Everyone has a domicile, which they acquire at birth, normally from their father. This will not always be the country of birth or the country they currently live in. <\/p>\n\n\n\n

You can change the domicile of origin acquired at birth to a domicile of choice once you are over 16. However, such a change can be difficult to prove to HMRC. Your domicile is usually the country which you consider to be your permanent home. But, working out which country you are domiciled in can be complex. <\/p>\n\n\n\n

It is wise to seek professional help to determine your position. It is up to you to determine your own domicile status and large amounts of tax are often at stake.<\/p>\n\n\n\n

From 6 April 2017, there were changes to UK tax law. An individual resident for tax purposes in the UK for 15 out of 20 tax years is \u2018deemed domiciled\u2019.<\/p>\n\n\n\n

Domicile is significant because it can have a bearing on your liability to UK income tax, capital gains tax and inheritance. This is doesn’t not account for where you actually reside. Anyone moving abroad from the UK might find they are no longer considered UK tax resident. However, they are still treated as UK domiciled.<\/p>\n\n\n\n

Becoming non-UK tax resident<\/h2>\n\n\n\n

Your tax residence status can change each tax year and even part way through a tax year. <\/p>\n\n\n\n

Since 6 April 2013, UK tax residence status has been determined by the statutory residence test, which contains four components that need to be considered each tax year. These are:<\/p>\n\n\n\n