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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 new (2016/17) edition of Taxation of Non-Residents and Foreign Domiciliaries by James Kessler QC

The text is based on the Finance Bill as it stood at 1 September 2016. The printed edition of the book, based on the Finance Act in its final form, is now out, and the online edition is in the process of being updated.

Contents

Updates

Introduction

1 Foreign Domicile: Tax Policy and Reforms

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

3 Domicile

4 Deemed Domicile for IHT

5 Deemed Domicile from 2017

6 Residence of Individuals

7 Residence of Trustees

8 Treaty-Residence

9 Exit Taxes

10 Split Years: Arrival and Departure

11 Temporary Non-residence: Post-2013 Departures

11A Temporary Non-residence: Pre-2013 Departures

12 The Remittance Basis

13 The Meaning of Remittance

14 Remittance Reliefs

15 Mixed Funds

16 Income Categories and Sources

17 Trading Income

18 Entertainers and Sportspeople

19 Property Income

20 Deduction of interest from Property Income

21 Interest Income

22 Exempt Interest of Non-Residents

23 Dividend Income

24 Royalty Income

25 Misc Sweep-Up Income

26 Employment Income

27 Travel Expenses: Employment Income Deduction

28 PAYE

29 Employment Income: DT Relief

30 Pension and Annuity Income

31 Discretionary Trusts: Income Tax

32 IIP Trusts: Income Tax

33 Settlor-interested Trusts

34 Transfer of Assets Abroad: Introduction

35 Transfer of Assets Abroad: Transferors

36 Transfer of Assets Abroad: Non-transferors

37 Transfer of Assets Abroad: Relief from Overlapping Charges

38 Transfer of Assets Abroad: Motive Defence

39 Life Policies and Contracts

40 Offshore Funds: Definition

41 Offshore Income Gains

42 Income from Offshore Funds

43 Accrued Income Profits

44 Deeply Discounted Securities

45 Unit Trusts

46 Intermediated Securities

47 Partnerships

48 Non-Residents Income Tax Relief

49 Collection of Tax from UK Representatives

50 Investment Manager Exemptions

51 Loans from Non-Resident Companies

52 Rates of Tax

53 Personal Allowances and Annual Exemptions

54 National Insurance Contributions

55 Capital Gains of UK Residents

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

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

58 Borrowing by Non-resident Trust: Sch 4B

59 Gains of Non-Resident Companies

60 Capital Losses

61 Foreign Currency Issues

62 Unremitted Income: Exchange Control

63 Double Taxation Arrangements: Introduction

64 DTA Anti-abuse Rules

65 Foreign Tax Credit Relief

66 EU Law and UK Taxation

67 Excluded Property: Definition

68 Excluded Property Exemptions

69 Wills and IOVs

70 Reservation of Benefit

71 IHT Consequences of Transfers Between Trusts

72 IHT Deduction for Debts

73 Double Inheritance Taxation: Introduction

74 IHT DTTs: India, Pakistan, Italy, France

75 IHT DTT: USA

76 IHT DTT: Switzerland

77 Foreign IHT Credit Relief

78 Marriage with Non-dom or Non-resident

79 Private Residence Relief

80 Residential Property of Non-Residents: NRCGT

81 Family Home and Chattels: Benefit in Kind Charges

82 Corporate Residential Property

83 Pre-Owned Assets

84 Joint Accounts

85 Estates of Deceased Persons: CGT

86 Estates of Deceased Persons: Income Tax

87 Who is the Settlor?

88 Trusts with Two or More Settlors

89 Situs of Assets for IHT

90 Situs of Assets for CGT

91 Foreign Entities

92 Hybrid Entities

93 Control Connected Close and Related Expressions

94 Permanent Establishment and Branch/Agency

95 Disclosure and Compliance

96 Disclosure and Compliance: IHT

97 Swiss Tax Agreement

98 Criminal Law and Professional Conduct

99 Client Notification Regulations

Appendix 1: Common Expressions

Appendix 2: Construction of Deeming Provisions

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

Appendix 4: Parliamentarians

Appendix 5: Visiting Forces

Appendix 6: How to Improve Residence and Domicile Taxation

Appendix 7: Reform of Offshore Anti-avoidance Rules

Appendix 8: UK Arrival or Departure: Tax Checklist

Appendix 9: Welsh Devolution

How to login

If you registered before the current edition was published in September 2016, you will need to reregister with the password for the current edition. Registration for an earlier edition is not valid.

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 or multiple user licence: To obtain these, go to the publishers online ordering here (book) and here (licence) For multiple user licence contact the publishers.

Without logging in, you can still access chapters 1 (Foreign domicile tax policy); 2 (Tax Avoidance); 11A (Temporary Non-residence: Pre-2013 Departures); 99 (Client Notification Regulations).

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

How to comment

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.

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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