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This website 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

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

Contents

Updates

Introduction

1 Foreign Domicile: Tax Policy and Reforms

2 Wake Up and Smell the Coffee: Public Debate on Tax Avoidance

3 Domicile

3A Deemed Domicile from 2017

4 Residence of Individuals

5 Residence of Trustees

6 Treaty-Residence

7 Year of Arrival and Departure

8 Exit Taxes

9 Temporary Non-residence: Post-2013 Departures

9A Temporary Non-residence: Pre-2013 Departures

10 Remittance Basis

11 The Meaning of Remittance

12 Remittance Reliefs

13 Mixed Funds

14 Income Sources and Categories

15 Trading Income

16 Property Income

17 Deduction of interest in computing property income

18 Interest Income

19 Exempt Interest of Non-Residents

20 Dividend Income

21 Royalty Income

22 Employment Income

23 PAYE

24 Employment Income: DT Relief

25 Pension and Annuity Income

26 Discretionary Trusts: Income Tax

27 IIP Trusts: Income Tax

28 Settlor-interested Trusts

29 Transfer of Assets Abroad: Introduction

30 Transfer of Assets Abroad: Transferors

31 Transfer of Assets Abroad: Non-transferors

32 Transfer of Assets Abroad: Relief from Overlapping Charges

33 Transfer of Assets Abroad: Motive Defence

34 Life Policies and Contracts

35 Offshore Funds - Definition

36 Offshore Income Gains

37 Income from Offshore Funds

38 Accrued Income Profits

39 Deeply Discounted Securities

40 Unit Trusts

41 Intermediated Securities

42 Partnerships

43 Non-Residents Income Tax Relief

44 Collection of Tax from UK Representatives

45 Investment Manager Exemptions

46 Loans from Non-Resident Companies

47 Rates of Tax

48 Personal Allowances and Annual Exemptions

49 National Insurance Contributions

50 Capital Gains of UK Residents

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

52 Capital Payments from Non-Resident Trusts: s.87

53 Borrowing by Non-resident Trust: Sch 4B

54 Gains of Non-Resident Companies

55 Capital Losses

56 Foreign Currency Issues

57 Unremitted Income: Exchange Control

58 Double Taxation Agreements: Introduction

59 Foreign Tax Credit Relief

60 EU Law and UK Taxation

61 Deemed Domicile for IHT

62 Excluded Property for IHT

63 Reservation of Benefit

64 IHT Consequences of Transfers Between Trusts

65 IHT Deduction for Debts

66 IHT Planning Before and After a Change of Domicile

67 IHT on Death: Wills and IOVs

68 Double Inheritance Taxation: Introduction

69 IHT DTTs India, Pakistan, Italy, France

70 IHT DTT USA

71 IHT DTT Switzerland

72 Foreign IHT Credit Relief

73 Marriage with Foreign Domiciliary or Non-Resident

74 Residential Property of Non-Residents: NRCGT

75 The Family Home and its Chattels: Benefit in Kind Charges

76 Corporate Residential Property

77 Pre-Owned Assets

78 Joint Accounts

79 Estates of Deceased Persons: CGT

80 Estates of Deceased Persons: Income Tax

81 Who is the Settlor?

82 Trusts with Two or More Settlors

83 Situs of Assets for IHT

84 Situs of Assets for CGT

85 Foreign Entities

86 Control Connected Close and Related Expressions

87 Permanent Establishment & Branch/Agency

88 Disclosure and Compliance

89 Swiss Tax Agreement Introduction

90 STA Clearance Facility

91 STA Withholding Tax

92 Disclosure of Information by Swiss Authorities

93 Criminal Law and Professional Conduct

Appendix 1: Terminology

Appendix 2: Construction of Deeming Provisions

Appendix 3: What Do We Mean by "Real"?

Appendix 4: Parliamentarians

Appendix 5: Visiting Forces

Appendix 6: Students

Appendix 7: Entertainers and Sportspeople

Appendix 8: How to Improve Residence and Domicile Taxation

Appendix 9: Reform of Non-Residence Anti- Avoidance Rules

Appendix 10: Issues to Consider Before UK Arrival or Departure: Checklist

Appendix 11: Travel Expenses: Employment Income Deduction

TFD 2016/17 edition out soon

The new 2016/17 edition of "Taxation of Non-residents and Foreign Domiciliaries" will be published online on 1 September 2016. The text will be based on the Finance Bill as it then stands. The printed edition of the book, based on the Finance Act in its final form, will be published in October and at that time the online edition will be updated.

To maintain unbroken access to TFD online you will need a copy of the new edition with an online licence. To obtain these, go to the publishers online ordering here (book) and here (licence)

Online licences for the current edition will not be valid from 1 September 2015 when the new edition is published.

About TFD Online

Most of this website requires you to login. To obtain a login licence:

- Every copy of the printed book has a 3 week trial licence (see inside back cover of volume 1)

- You may purchase a single user online licence (£99 + VAT with a copy of the book) or a multiple user licence: To obtain the book and online licence, go to the publishers online ordering and search for Kessler. For multiple user licence contact the publishers.

3 chapters can be accessed without a login: chapters 1 and 2 (which concern policy issues of general interest) and 9A (on a transitional issue which is not set out in full in the printed book).

If you registered before the current edition was published in September 2015, you need to reregister with a password for the current edition. However, if you have not (yet) bought the book you may register for a free one day trial. There is no charge for a one day trial, but if you find the site useful, and wish to express support or thanks, you are invited to make a donation to the charity Water Aid.

You may enter this site once you have registered and logged in by clicking on the index below, or you can search the text.

Users can also contribute to the text and correct slips or errors and if you see anything that needs correcting or expanding, 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 Oliver Marre.

The initial data was the current edition of Taxation of Non-residents and Foreign Domiciliaries published 1 September 2015.

There have been significant updates since the book went to print. For the list see here.

If you want further advice

If you do not find the answer to your question in TFD online, or if you want advice on which you can legally rely, you may instruct James Kessler QC to advise. For further information see How to instruct James Kessler QC.

TFD archive editions

There are archive editions for years since 2008/09. These will occasionally 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

If you have technical problems, or problems logging in, click here

To contact James Kessler QC click here

To contact Oliver Marre, who reviews online contributions, click here

For multiple user licences, or to install on a firm's intranet, contact the publishers.

Technical notes

TFD online is in technical terms a Wiki on the lines of Wikipedia, but only registered users can edit this wiki.

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