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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

Non-dom Policy & Avoidance:

1 Foreign Domicile: 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 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

37 Employment Income: DT Relief

38 Pension and Annuity Income

39 Benefit in Kind: Family Home and Chattels

40 Benefit in Kind: Loans from Non-Resident 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 Offshore Income Gains

67 Income from Offshore Funds

68 Unit Trusts

69 Life Policies and Contracts

70 Intermediated Securities

71 Investment Manager Exemptions

72 Investment Management Fees & Carried Interest

Inheritance Tax:

73 IHT Terms and Concepts

74 Excluded Property: Definition

75 Excluded Property Exemptions

76 Wills and IOVs

77 Reservation of Benefit

78 Inter-Trust Transfers: IHT

79 IHT Deduction for Debts

80 IHT Close-Company Code

81 IHT Residential Property Code

82 Pre-Owned Assets

83 Pension Schemes and IHT

Entities:

84 Partnerships

85 Partnership Income: Attribution

86 Settlement, Bare Trust, and Associated Terminology

87 Estates of Deceased Persons: CGT

88 Estates of Deceased Persons: Income Tax

89 Foreign Entities

90 Hybrid Entities

Topics Affecting More Than One Tax:

91 Protected Trusts

92 Non-Dom/Non-Resident Spouse

93 Joint Accounts

94 Foreign Currency Issues

95 Cryptoassets

96 Unremittable Assets

97 ATED and SDLT

98 Who is the Settlor?

99 Multiple Settlors

100 Statutory Tax Indemnities

101 Situs of Assets for IHT

102 Situs of Assets for CGT

103 Control Connected Close and Related Expressions

104 Participation & % Investment Tests

105 Permanent Establishment and Branch/Agency

Double Taxation Agreements IT/CGT:

106 Double Taxation Arrangements: Introduction

107 DTA Anti-abuse Rules

108 Limitation on Benefits

109 Credit for Foreign Tax

110 Non-discrimination

Double Taxation Agreements: IHT:

111 IHT Double Taxation Treaties: Introduction

112 IHT DTAs: India, Pakistan, Italy, France

113 IHT DTA: Netherlands

114 IHT DTA: South Africa

115 IHT DTA: Switzerland

116 IHT DTA: USA

117 Credit for Foreign IHT

Administration:

118 Reporting and Compliance

119 Tax Return Filing Position

120 Claims

121 Collection of Tax from UK Representatives

122 Reporting and Compliance: IHT

123 Penalties

124 Failure to Prevent Tax Evasion

125 Common Reporting Standard

126 Trust Registration (TRS)

127 Customer Due Diligence

128 Reporting Offshore Trusts

129 International Movement of Capital: Reports

130 Money Laundering

Appendices

Words & Concepts:

Appendix 1 Words of Dispute

Appendix 2 Common Legal Expressions

Appendix 3 Family Terminology

Appendix 4 Consideration/Arm's Length/Full Value

Appendix 5 Commercial/View to Profit

Appendix 6 Beneficial Ownership/Entitlement

Appendix 7 Offshore Fund/CIS/OEIC

Appendix 8 What Do We Mean by "Real"

Construction of Statutes:

Appendix 9 Deeming Provisions

Appendix 10 Purpose of Statute

Special Taxpayers:

Appendix 11 Parliamentarians

Appendix 12 Visiting Forces

Appendix 13 Students and Teachers

Tax Reform:

Appendix 14 How to Improve Residence and Domicile Taxation

Appendix 15 Reform of Offshore Anti-avoidance Law

Appendix 16 The Wisdom of Parliament

2022/23 edition

The 2022/23 edition of Taxation of Non-Residents and Foreign Domiciliaries is available online and in paper form.

To access TFD online, you will need an online licence. To obtain this, go to the publishers website or email [email protected] Licences 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 1 Foreign Domicile: Tax Policy
Chapter 2 Tax Avoidance.

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Comments please

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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.

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Contact

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Technical notes

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TFD Resource Archive

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