International and residency
UK Tax Residency Rules: Simple Guide
Navigating the intricate rules of UK tax residence (deemed domicile) can be challenging. Here's a breakdown to guide you through: Deemed Domicile for UK Tax…
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Key takeaways
- 1Understanding deemed domicile status is crucial for tax purposes.
- 2For inheritance tax (IHT), since 6 April 2025 the test for worldwide IHT is long-term residence (UK resident in 10 of the previous 20 tax years).
- 3The IHT tail is now 3 to 10 years after leaving the UK, and long-term residence resets after 10 consecutive years of non-residence.
Navigating the intricate rules of UK tax residence can be challenging. Here's a breakdown to guide you through:
Deemed Domicile for UK Tax Residence
Understanding deemed domicile status is crucial for tax purposes. Since 6 April 2025, deemed domicile and the remittance basis no longer apply for income tax and capital gains tax. Residence is decided by the Statutory Residence Test, and new arrivals after 10 years of non-residence can claim the four-year FIG regime.
Implications for Inheritance Tax
For inheritance tax (IHT), since 6 April 2025 the test for worldwide IHT is long-term residence (UK resident in 10 of the previous 20 tax years). Being UK resident alone does not trigger worldwide IHT.
For inheritance tax (IHT), since 6 April 2025 the test for worldwide IHT is long-term residence (UK resident in 10 of the previous 20 tax years).
Losing and Regaining Deemed Domicile Status
The IHT tail is now 3 to 10 years after leaving the UK, and long-term residence resets after 10 consecutive years of non-residence.
Exceptions and Unaffected Individuals
The old deemed domicile rules have all been replaced since April 2025.
Contact ASWATAX for Bespoke Tax Advice
These tax matters are complex. It's crucial to seek professional advice tailored to your specific circumstances. Our team specialises in these areas and is here to help.
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International Tax
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Arriving, leaving, the Foreign Income and Gains regime, international inheritance tax, the UAE and Saudi Arabia.
Guide in progress
The UK Residency Guide
The Statutory Residence Test, the FIG regime and planning before you move.
Talk it through instead
Our The UK Residency Guide is being written. In the meantime, a 20-minute call with a Chartered Tax Adviser is free.
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