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This site provides comprehensive information about:

1. Taxation of foreign domiciliaries
2. Taxation of non-residents on UK income and assets
3. Taxation of UK residents on foreign income and assets
4. Other topics arising in this context, including tax avoidance, and disclosure and compliance

It is the online version of Taxation of Non-Residents and Foreign Domiciliaries by James Kessler KC.

Contents

Update

Introduction

Dedication

A1 FIG Relief/Abolition of Domicile

Non-dom Policy & Avoidance

1 Mobile Individuals: Tax Policy

2 Tax Avoidance

3 Targeted Anti-Avoidance Rules (TAARs)

Domicile & Residence

4 Domicile

5 Deemed Domicile

6 Residence of Individuals

7 Residence of Trustees

8 Residence of Companies

9 Treaty-Residence

10 Split Years

11 Temporary Non-residence

12 Exit Taxes

13 UK Arrival or Departure: Tax Checklist

Income Tax: Principles & Remittance Basis

14 Income and its Categorisation

15 Income Recognition: Receive/Entitled/Arise/Paid

16 Source/RFI/Territorial Principles

17 The Remittance Basis

18 The Meaning of Remittance

19 Remittance Reliefs

20 Mixed Funds

Income by Category

21 Trading Income

22 Trading in Land

23 Performers

24 Property Income

25 Deduction of interest from Property Income

26 Interest Income

27 Exempt Interest of Non-Residents

28 Accrued Income Profits

29 Deeply Discounted Securities

30 Dividend Income

31 Annual Payments

32 Intellectual Property Income

33 Misc Sweep-Up Income

34 Employment Income

35 Travel Expenses: Employment Income

36 PAYE

36A Disguised Remuneration

36B Employer-Financed Retirement Benefits Scheme

37 Employment Income: DT Relief

38 Pension and Annuity Income

39 Benefit in Kind: Family Home and Chattels

40 Loans from Companies

IT: General

41 Discretionary Trusts: Income Tax

42 IIP Trusts: Income Tax

43 Rates of Income Tax/CGT

44 Personal Allowances

45 Non-Residents Income Tax Relief

46 National Insurance Contributions

IT Avoidance Codes

47 Settlor-interested Trust Code

48 Transfer of Assets Abroad: Introduction

49 Transfer of Assets Abroad: Transferors

50 Transfer of Assets Abroad: Benefits

51 Transfer of Assets Abroad: Relief from Overlapping Charges

52 Transfer of Assets Abroad: Motive Defence

53 Profit Fragmentation

54 Transfer of Income Streams

55 Transactions in Securities

Capital Gains Tax

56 Chargeable Gains

57 UK Property Held by Non-Residents

58 Reorganisations

59 Residential Property: CGT

60 Gains of Non-Resident Settlor-Interested Trusts: s.86

61 Capital Payments from Non-Resident Trusts: s.87 Code

62 Borrowing by Non-Resident Trust: Sch 4B

63 Sub-Funds

64 Gains of Non-Resident Companies

65 Capital Losses

Funds

66 Funds: Terms & Concepts

67 Offshore Income Gains

68 Income from Offshore Funds

69 Unit Trusts

70 Life Policies and Contracts

71 Intermediated Securities

72 Investment Manager Exemptions

73 Investment Management Fees & Carried Interest

Inheritance Tax

74 IHT Terms and Concepts

75 Excluded Property: Definition

76 Excluded Property Exemptions

77 Wills and IOVs

78 Reservation of Benefit

79 Inter-Trust Transfers: IHT

80 IHT Deduction for Debts

81 IHT Close-Company Code

82 IHT Residential Property Code

83 Pre-Owned Assets

84 Pension IHT

Entities

85 Partnerships

86 Partnership Income: Allocation

86A Salaried Members Code

86B Partnerships CGT

87 Settlement, Bare Trust, and Associated Terminology

88 Estates of Deceased Persons: CGT

89 Estates of Deceased Persons: Income Tax

90 Foreign Entities

91 Hybrid Entities

Topics Affecting More Than One Tax

92 Protected Trusts

93 Non-Dom/Non-Resident Spouse

94 Joint Accounts

95 Foreign Currency Issues

96 Cryptoassets

97 Unremittable Assets

98 ATED and SDLT

99 Who is the Settlor?

100 Multiple Settlors

101 Statutory Tax Indemnities

102 Situs of Assets for IHT

103 Situs of Assets for CGT

104 Control Connected Close and Related Expressions

105 Participation, % Investment & Material Interest Tests

106 Permanent Establishment and Branch/Agency

Double Taxation Agreements IT/CGT

107 Double Taxation Arrangements: Introduction

108 DTA Anti-abuse Rules

109 Third Party Relief/Savings Clause

110 Limitation on Benefits

111 Credit for Foreign Tax

112 Non-discrimination

113 Mutual Agreement Procedure

Double Taxation Agreements: IHT

114 IHT Double Taxation Treaties: Introduction

115 IHT DTAs: India, Pakistan, Italy, France

116 IHT DTA: Netherlands

117 IHT DTA: South Africa

118 IHT DTA: Switzerland

119 IHT DTA: USA

120 Credit for Foreign IHT

Administration

121 Reporting and Compliance

122 Tax Return Filing Position

123 Claims

124 Collection of IT/CGT from UK Representatives

125 Reporting and Compliance: IHT

126 Penalties

127 Failure to Prevent Tax Evasion

128 Reporting Offshore Trusts

129 International Movement of Capital: Reports

130 Common Reporting Standard

131 Trust Registration (TRS)

132 Customer Due Diligence

133 Money Laundering: Criminal Property

Appendices

Words & Concepts

Appendix 1 Words of Dispute

Appendix 2 Common Legal Expressions

Appendix 3 Family Terminology

Appendix 3A Share/Security Terminology

Appendix 4 Consideration/Arm's Length/Full Value

Appendix 5 Commercial/View to Profit

Appendix 6 Beneficial Ownership/Entitlement

Appendix 7 What Do We Mean by "Real"

Construction of Statutes

Appendix 8 Deeming Provisions

Appendix 9 Purpose in Tax Statutes

Special Taxpayers

Appendix 10 Parliamentarians

Appendix 11 Visiting Forces

Appendix 12 Students and Teachers

Tax Reform

Appendix 13 How to Improve Residence and Domicile Taxation

Appendix 14 Reform of Offshore Anti-avoidance Law

Appendix 15 Citizenship-based Taxation

Appendix 16 The Wisdom of Parliament

2024/25 edition

The 2024/25 edition of Taxation of Non-Residents and Foreign Domiciliaries is available online and in paper form. The online form is the better choice as it is updated during the year.

To access TFD online, you will need an online licence. To obtain this, go to the publishers website or email [email protected] Licences for previous editions are not valid for the current edition.

If you are an academic, student or other non-tax practitioner who wants access for research purposes, contact James Kessler

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Chapter A1 FIG Relief/Abolition of Domicile
Chapter 1 Mobile Individuals: Tax Policy
Chapter 2 Tax Avoidance

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Comments please

Users can also contribute to the text and if you can add anything, or spot anything that needs to be corrected, please do! A copy of the next edition of the book will be given to the user who makes the most edits. User contributions are reviewed by Rebecca Sheldon.

If you want further advice

If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler KC or other members of his chambers to advise. See How to instruct James Kessler KC.

Archive editions

There are archive editions for years since 2003/04. These will be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.

Contact

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Technical notes

TFD online is a Wiki on the lines of Wikipedia, but only registered users can edit the text.

TFD Resource Archive

To access the TFD reference material, click here: TFD Resource Archive