Individuals claiming non-UK domicile

Extract from an article by Adrian Rudd (of PricewaterhouseCoopers, Tax Adviser's representative on Technical Committee) regarding the position of transfers of assets by individuals who are believed to be domiciled outside the UK, but whose domicile position is uncertain. The capital taxes sub-committee has been considering the position of transfers of assets by individuals who are believed to be domiciled outside the UK, but whose domicile position is uncertain.

In the past the Capital Taxes Office (CTO) routinely gave rulings on domicile status on request, including in the absence of an inheritance tax account. The CTO no longer give such rulings. This can raise an issue where there is a potential occasion of charge by an individual who is thought not to be domiciled in the UK in respect of property situated outside the UK. Provided it is confirmed that the individual is not domiciled on the UK no liability to tax will arise.

The CTO have requested that in circumstances of doubt an IHT account is submitted, together with a copy of any trust deed and an explanation of the transferor’s claimed domicile, with a claim that the transferor is not domiciled in the UK. The CTO has confirmed that it is not assumed that by the very act of submitting an account the taxpayer is formally accepting UK domicile.

Technical Department
020 7235 9381