Non-domiciled individuals

Some of the wealthiest individuals in the UK are classified as non-domiciled individuals. This category of residence is used primarily for tax purposes. Non-domiciled individuals are considered by HMRC to be residents of the UK, but not permanent ones. The classification requires the applicant to declare that he or she does not plan to live in the UK permanently, but there is no restriction on how long they can stay.

The benefits derived from the non-domiciled status were traditionally quite significant, although they are only likely to be relevant to a small percentage of the overall British population. The advantage consisted mainly of the ability to avoid tax on profits gained outside the UK, as long as that money is not spent in the UK. The origin of this rule can be found in imperialist times, when residents of the colonies were permitted to avoid paying tax on rent they were gaining in the colonies whilst they were in the UK, as long as the funds were not spent in the UK.

In recent years the laws on the matter have been criticised for allowing some of the world’s richest individuals to pay little to no tax on massive profits. After a period of arguments the laws have changed and are now significantly different.

If you are a non-domiciled individual or you are considering applying for the status, you are advised to firstly seek advice regarding the rule change. You should also try to establish whether or not you will be permitted to become a non-domiciled individual under UK regulations. These concerns along with many other questions you may have can be answered by a tax solicitor.

If you would like to obtain legal advice on non-domiciled status, Contact Law can put you in touch with a local tax solicitor free of charge. So, if you have any questions or would like our help in finding local tax solicitors please call us on 0800 1777 162 or complete the web-form above.