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Technical
Info - UK Tax
This page is for persons who might be affected
by UK Tax. It shows general limited information on UK Tax treatment,
depending on ones residence and domicile. The facts are based
on EBA’s understanding and are given for consideration
only. Whilst care has been taken, we cannot accept any responsibility
for its interpretation or subsequent changes. For specific information,
please contact us.
An individual’s residence and domicile
status is important when determining his or her liability to
UK Tax.
Residence
To be regarded as resident in the UK you must normally be physically
present in the country at some time in the tax year. You will
always be resident if you are in the UK for 183 days or more
in the tax year. There are not exceptions to this. You count
the total number of days you spend in the UK – it does
not matter if you come and go several times during the year
or if you are in the UK for one stay of 183 days or more. If
you are in the UK for less than 183 days, you may still be treated
as resident for the year under other tests.
Ordinary Residence
If you are resident in the UK year after year, you are treated
as an ordinarily resident. You may be resident but not ordinarily
resident in the UK for a tax year if, for example, you normally
live outside the UK but are in the UK for 183 days or more in
the year. Or you may be ordinarily resident but not resident
for a tax year if, for example, you usually live in the UK but
have gone abroad for a long holiday and do not set foot in the
UK during that year.
Domicile
Is determined usually at birth (Domicile of Origin). An individual
can acquire a Domicile of Choice by moving to a new country
with intention of living there permanently. For more detailed
information, please contact us.
Investment
Income |
Residence
Status and Domicile |
Arising
in UK |
Arising
outside the UK |
Resident and ordinarily resident,
and domiciled |
Liable |
Liable |
Resident and ordinarily resident,
not domiciled |
Liable |
Liable if received in the UK 1 |
Resident but not ordinarily resident,
domiciled |
Liable |
Liable 2 |
Resident but not ordinarily resident,
not domiciled |
Liable |
Liable if received in the UK 1 |
Not resident but ordinarily resident,
domiciled |
Liable 3,4 |
Not Liable |
Not resident but ordinarily resident,
not domiciled |
Liable 3,4 |
Not Liable |
Not resident and not ordinarily resident,
domiciled |
Liable 3,4 |
Not Liable |
Not resident and not ordinarily resident,
not domiciled |
Liable 3,4 |
Not Liable |
1. You are taxable on the whole of the income
arising in the Republic of Ireland.
2. If you are a Commonwealth (this includes a British) citizen
or an Irish citizen, the remittance basis applies, unless the
income arises in the Irish Republic, in which case note 1 applies.
3. Possible relief under a double taxation agreement.
4. The charge to tax may be limited
Capital
Gains Tax |
Residence Status
and Domicile |
UK
Assets 1 |
Overseas
Assets |
Resident and ordinarily resident,
and domiciled |
Liable |
Liable |
Resident and ordinarily resident,
not domiciled |
Liable |
Liable if received in the UK |
Resident but not ordinarily resident,
domiciled |
Liable |
Liable |
Resident but not ordinarily resident,
not domiciled |
Liable |
Liable if received in the UK |
Not resident but ordinarily resident,
domiciled |
Liable 2 |
Liable |
Not resident but ordinarily resident,
not domiciled |
Liable 2 |
Liable if received in the UK 2 |
Not resident and not ordinarily resident,
domiciled |
Not Liable 3,4 |
Not Liable 4 |
Not resident and not ordinarily resident,
not domiciled |
Not Liable 3,4 |
Not Liable 4 |
1. There is no liability if the disposal is
of certain UK Government Securities.
2. Possible relief under a double taxation agreement.
3. Liability will arise if the assets were used or held for
the purpose of a trade, profession or vocation carried on in
the UK through a branch or agency or by the branch or agency.
4. Gains arising during a period of temporary non-residence
may be chargeable
Inheritance
Tax |
|
UK
Domicile |
Non-UK
Domicile |
UK Assets |
Liable |
Liable |
Foreign Assets |
Liable |
Not Liable |
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