Residence & Domicile, Statutory Residence Test
As clients are more globally mobile and in an increasingly transparent world, the specialist UK tax advice required has become even more important. From entrepreneurial individuals considering a move abroad to non-residents turning their attention towards the UK, Pure Tax has extensive expertise in advising on the complexities of this ever-changing and complex area of UK tax, e.g. Trusts and IHT. From experience, establishing and advising on Residence & Domicile status, performing the Statutory Residence Test, and explaining the Remittance Basis is most important.
We are particularly experienced in advising non-UK domiciled individuals who became or are becoming ‘deemed domiciled’ under rule changes introduced from 6 April 2017; those arriving in the UK to reside here; and those with connections to places like India and thus able to benefit from the UK-India tax treaty for Inheritance Tax purposes.
See our 5* Google Reviews, which are most of our client testimonials – despite this specialist area of tax work being so private and discreet!
Coming to the UK
The UK’s tax regime for non-UK domiciled individuals continues to be attractive enough for high net worth individuals and families moving to the UK from overseas. Under the ‘non-dom’ regime, non-UK income and gains may be outside the scope of UK taxation until such time as they are remitted to the UK; Remittance Basis of taxation. In addition to this, as above, non-UK domiciled individuals may be outside the scope of UK Inheritance Tax on their non-UK assets, subject to their affairs being appropriately structured and understanding Residence & Domicile fully.
For those moving to the UK, putting the right structures in place before their arrival offers significant tax benefits. The team at Pure Tax specialises in advising non-doms on overseas’ bank account structuring, holding assets and the ‘Remittance Basis’ of taxation, from pre-arrival through to becoming UK resident and beyond (as it often is).
Areas on which we advise include:
- The UK ‘Statutory Residence Test’ and timing your arrival to the UK
- Pre-arrival structuring and overseas’ bank account segregation (Residence & Domicile)
- The Remittance Basis of taxation and tax-efficient remittances to the UK
- Liaising with existing non-UK advisors to ensure a joined-up approach ahead of your move
- The roll of Trusts and IHT
Leaving the UK
Individuals may leave the UK for a multitude of reasons, from lifestyle and family relocation to establishing a business overseas. Understanding the tax implications of becoming non-UK resident, and timing your move appropriately, is vital to ensuring a smooth transition and avoiding tax problems.
Pure Tax can advise on the cessation of UK residence, understanding the Statutory Residence Test fully, and we also have extensive contacts with overseas advisors with whom we liaise as appropriate. We can also work with existing advisors and trusted parties.
HOW CAN PURE TAX HELP?
At Pure Tax our Tax Investigation & Disclosure specialists are industry recognised and have dealt with hundreds of contentious situations with HMRC over the years. We are adept at managing interactions with the tax authorities to ensure that the investigation and disclosure processes run smoothly and that your interests are best protected.
