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Residence and domicile ― effect on tax liability

Produced by Tolley in association with
Employment Tax
Guidance

Residence and domicile ― effect on tax liability

Produced by Tolley in association with
Employment Tax
Guidance
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The extent to which an individual is subject to tax in any country is normally determined in part by reference to their residence status in that country. In the UK, there is an additional consideration. It has long been a feature of UK taxation that an individual’s liability to UK tax has been determined by reference to both their UK residence and domicile status. As mentioned below, non-domiciliaries are, to 2024/25, able to use the remittance basis of taxation in the UK, which means that their foreign income and gains are not taxable in the UK unless they are brought to the UK.

This guidance note looks at the effect that residence and domicile has on the taxation of an individual’s employment income, investment income and capital gains.

In Autumn Budget 2024, the Chancellor confirmed earlier announcements that the non-UK domicile of taxation would be abolished from 6 April 2025. Thereafter, the UK taxation of worldwide income and gains will be based on conditions relating to an individual’s residence status

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Lee McIntyre-Hamilton
Lee McIntyre-Hamilton

Tax Partner at Keystone Law , Employment Tax


Lee is a tax specialist and Partner at Keystone Law. He has been advising on global mobility and international employment tax matters for more than 20 years. He provides support to employers and their globally mobile employees. He also provides personal tax advice to globally mobile executives, including non‐resident directors. Lee’s expertise covers the employer and employee tax, social security and payroll implications of cross‐border moves. This includes employer and employee tax compliance, international share schemes tax, tax on pensions for mobile employees, the taxation of cross‐border termination payments and operating tax equalisation arrangements. Lee also provides advice on the tax aspects of global mobility and globally remote working policies and processes. Lee also covers international employment tax matters such as tax and social security for globally remote workers and the assessment of employment status for tax purposes. International organisations of all sizes turn to Lee for tax advice, across various sectors, including social and humanitarian enterprises, education, life sciences and pharmaceuticals. Lee is a member of the HMRC Expatriate Tax technical forum and regularly speak at industry events on global mobility and international employment tax matters. He is also the resident global mobility tax expert for the Global Payroll Association and provides tax training to payroll specialists on matters such as tax residence, international social security and short term business visitors.

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