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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

It is the online version of the 2017/18 edition of Taxation of Non-Residents and Foreign Domiciliaries by James Kessler QC.

Contents

Introduction

1 Foreign Domicile: Tax Policy and Reforms

2 Tax Avoidance: Public Debate

3 Domicile

4 Deemed Domicile

5 Residence of Individuals

6 Residence of Trustees

7 Treaty-Residence

8 Exit Taxes

9 Split Years: Arrival and Departure

10 Temporary Non-residence: Post-2013 Departures

10A Temporary Non-residence: Pre-2013 Departures

11 The Remittance Basis

12 The Meaning of Remittance

13 Remittance Reliefs

14 Mixed Funds

15 Income Categories and Sources

16 Trading Income

17 Trading in Land

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 Investment Management Fees & Carried Forward

52 Loans from Non-Resident Companies

53 Rates of Tax

54 Personal Allowances and Annual Exemptions

55 National Insurance Contributions

56 Gains of UK Residents

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

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

59 Borrowing by Non-resident Trust: Sch 4B

60 Protected Trusts

61 Sub-Funds

62 Gains of Non-Resident Companies

63 Capital Losses

64 Foreign Currency Issues

65 Unremittable Assets

66 Double Taxation Arrangements: Introduction

67 DTA Anti-abuse Rules

68 Foreign Tax Credit Relief

69 EU Law and UK Taxation

70 Excluded Property: Definition

71 Excluded Property Exemptions

72 Wills and IOVs

73 Reservation of Benefit

74 Inter-Trust Transfers: IHT

75 IHT Deduction for Debts

76 IHT Double Taxation Treaties - Introduction

77 IHT DTAs: India, Pakistan, Italy, France

78 IHT DTA: USA

79 IHT DTA: Switzerland

80 IHT DTA: Netherlands

81 Foreign IHT Credit Relief

82 Marriage to Non-dom or Non-resident

83 Private Residence Relief

84 Residential Property of Non-Residents: NRCGT

85 Family Home and Chattels: Benefit in Kind Charges

86 Corporate Residential Property

87 Residential property: IHT

88 Pre-Owned Assets

89 Joint Accounts

90 Estates of Deceased Persons: CGT

91 Estates of Deceased Persons: Income Tax

92 Who is the Settlor?

93 Trusts with Two or More Settlors

94 Situs of Assets for IHT

95 Situs of Assets for CGT

96 Foreign Entities

97 Hybrid Entities

98 Control Connected Close and Related Expressions

99 Permanent Establishment and Branch/Agency

100 Disclosure and Compliance

101 Disclosure on Death

102 Disclosure of Offshore Trusts

103 Criminal Law and Professional Conduct

Appendix 1: Common Expressions

Appendix 2: Consideration, Arm's Length/Full Value

Appendix 3: Associated Operations: IHT

Appendix 4: Construction of Deeming Provisions

Appendix 5: What Do We Mean by "Real"?

Appendix 6: Parliamentarians

Appendix 7: Visiting Forces

Appendix 8: How to Improve Residence and Domicile Taxation

Appendix 9: Reform of Offshore Anti-avoidance Rules

Appendix 10: UK Arrival or Departure: Tax Checklist

Appendix 11: Welsh Devolution

New 2017/18 edition

The text of this 2017/18 edition of Taxation of Non-residents and Foreign Domiciliaries is based on the Finance Bill (March 2017) and draft domicile legislation published July 2017. (At present some chapters remain to be updated: this is noted at the top of the chapter where appropriate. Some further formatting work also remains to be completed.)

The printed edition of the book, based on the Finance (no.2) Act in its final form, will be published in November, and the online edition will then be updated to the text of the published book.

To access TFD online you will need to order a copy of the new edition with an online licence. To obtain the book, go to the publishers online ordering; to order a licence go to online ordering or click here

Licences for the current edition are no longer valid.

How to login

Most of this site 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 access: chap 1 Foreign Domicile: Tax Policy and Reforms; chap 2 Wake Up and Smell the Coffee: Public Debate on Tax Avoidance; chap 11A Temporary Non-residence: Pre-2013 Departures.

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

You need to register with the password for the current edition. Registration for an earlier edition is not valid.

How to comment

Users can also contribute to the text and if you can add anything extra which is worth saying, 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 Oliver Marre.

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 QC to advise. See How to instruct James Kessler QC.

Archive editions

There are archive editions for years since 2003/04. 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 the text.

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