Domicile and remittance

Domicile and residence

The concept of domicile, alongside the concept of residence (for which, see: Residence of individuals—overview) is used to establish the extent of an individual’s liability to UK taxation. Specifically, domicile is a key factor in establishing whether the remittance basis could be applicable to the taxation of foreign income and gains and determines an individual’s liability to inheritance tax on foreign situs assets (for which, see: Foreign assets and domiciles — Inheritance tax—non-domiciled).

The definition of domicile in the context of UK taxation is taken from its ordinary meaning and case law, rather than being set out in statute. Domicile is a concept separate from nationality, residence or citizenship and the outcome is determined by applying a set of principles to the individual’s circumstances. An element of permanence and intention are fundamental in ascertaining domicile.

The general principles of domicile are:

1. •

   every individual has a domicile. It is not possible to be without one, nor is it possible to have more than one domicile at any given time

2. •

   an individual is often domiciled where they have a permanent home, but not always