Year-End Tax Guide 2023/24: Non-Domiciled Tax

Discover how residence status affects income, capital gains, and inheritance tax in the UK.

January 24, 2024
Year-End Tax Guide 2023/24: Non-Domiciled Tax

Tax and Your Resident Status  

A non-dom is a UK resident whose permanent home, or domicile, is outside of the UK. An individual may have more than one tax residence but can only have one domicile at any given time. Domicile status is incredibly difficult to change and is significant because it determines an individual’s liability to UK income tax, capital gains tax and inheritance tax.  

As a non-dom UK resident taxpayer, you can choose to be taxed on either the arising basis or the remittance basis.  

Under the arising basis you are taxed as any other UK-domiciled and resident taxpayer would be, on your worldwide income and gains.    

Under the remittance basis you are only taxed on your UK earnings and gains. Any income or gains arising outside of the UK are not taxed unless you choose to bring that money into, or enjoy use of it in, the UK. Claiming the remittance basis will cause the individual to lose their personal allowance.    

The Government introduced new deemed-domicile rules from 6 April 2017 to limit the time that these beneficial rules can be used.  

Non-doms will be deemed UK-domiciled for income tax, capital gains tax and inheritance tax purposes if they’ve been a UK resident for at least 15 out of the past 20 tax years immediately before the start of the current tax year.    

If you become deemed domiciled moving forward, you will no longer be able to claim the remittance basis and will be assessed on your worldwide income and gains on the arising basis. You will also potentially be liable to inheritance tax on worldwide assets.    

Year-End Tax Guide 2023/24  

If you would like to access our full year-end tax guide, simply click here to view the PDF.    

Alternatively, you can view an area specific mini blog from the list below:    

1. Personal Allowances and Reliefs    

2. ISAs  

3. Pension Contributions  

4. Inheritance Tax

5. Property Tax

6. Capital Gains Tax  

7. Business Asset Disposal Relief

8. Tax-Efficient Staff Benefits  

9. Corporation Tax    

10. VAT  

11. Penalties    




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