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This site provides comprehensive information about:

1. Taxation of foreign domiciliaries
2. Taxation of non-residents on UK income and assets
3. Taxation of UK residents on foreign income and assets
4. Other topics arising in this context, including tax avoidance, and disclosure and compliance

It is the online version of Taxation of Non-Residents and Foreign Domiciliaries by James Kessler KC.

Contents

Update

Introduction

Non-dom Policy & Avoidance:

1 Foreign Domicile: Tax Policy

2 Tax Avoidance

3 Targeted Anti-Avoidance Rules (TAARs)

Domicile & Residence:

4 Domicile

5 Deemed Domicile

6 Residence of Individuals

7 Residence of Trustees

8 Residence of Companies

9 Treaty-Residence

10 Split Years: Arrival and Departure

11 Temporary Non-residence

12 Exit Taxes

13 UK Arrival or Departure: Tax Checklist

Income Tax: Principles & Remittance Basis:

14 Income Categorisation

15 Income Recognition: Receive/Entitled/Arise/Paid

16 Source/RFI/Territorial Principles

17 The Remittance Basis

18 The Meaning of Remittance

19 Remittance Reliefs

20 Mixed Funds

Income by Category:

21 Trading Income

22 Trading in Land

23 Performers

24 Property Income

25 Deduction of interest from Property Income

26 Interest Income

27 Exempt Interest of Non-Residents

28 Accrued Income Profits

29 Deeply Discounted Securities

30 Dividend Income

31 Annual Payments

32 Intellectual Property Income

33 Misc Sweep-Up Income

34 Employment Income

35 Travel Expenses: Employment Income

36 PAYE

37 Employment Income: DT Relief

38 Pension and Annuity Income

39 Benefit in Kind: Family Home and Chattels

40 Benefit in Kind: Loans from Non-Resident Companies

IT: General:

41 Discretionary Trusts: Income Tax

42 IIP Trusts: Income Tax

43 Rates of Income Tax/CGT

44 Personal Allowances

45 Non-Residents Income Tax Relief

46 National Insurance Contributions

IT Avoidance Codes:

47 Settlor-interested Trust Code

48 Transfer of Assets Abroad: Introduction

49 Transfer of Assets Abroad: Transferors

50 Transfer of Assets Abroad: Benefits

51 Transfer of Assets Abroad: Relief from Overlapping Charges

52 Transfer of Assets Abroad: Motive Defence

53 Profit Fragmentation

54 Transfer of Income Streams

55 Transactions in Securities

Capital Gains Tax:

56 Chargeable Gains

57 UK Property Held by Non-Residents

58 Residential Property: CGT

59 Gains of Non-Resident Settlor-Interested Trusts: s.86

60 Capital Payments from Non-Resident Trusts: s.87 Code

61 Borrowing by Non-Resident Trust: Sch 4B

62 Sub-Funds

63 Gains of Non-Resident Companies

64 Capital Losses

Funds:

65 Life Policies and Contracts

66 Offshore Income Gains

67 Income from Offshore Funds

68 Unit Trusts

69 Intermediated Securities

70 Investment Manager Exemptions

71 Investment Management Fees & Carried Interest

Inheritance Tax:

72 IHT Terms and Concepts

73 Excluded Property: Definition

74 Excluded Property Exemptions

75 Wills and IOVs

76 Reservation of Benefit

77 Inter-Trust Transfers: IHT

78 IHT Deduction for Debts

79 IHT Close-Company Code

80 IHT Residential Property Code

81 Pre-Owned Assets

82 Pension Schemes and IHT

Entities:

83 Partnerships

84 Partnership Income: Attribution

85 Settlement, Bare Trust, and Associated Terminology

86 Estates of Deceased Persons: CGT

87 Estates of Deceased Persons: Income Tax

88 Foreign Entities

89 Hybrid Entities

Topics Affecting More Than One Tax:

90 Protected Trusts

91 Non-Dom/Non-Resident Spouse

92 Joint Accounts

93 Foreign Currency Issues

93A Cryptoassets

94 Unremittable Assets

95 ATED and SDLT

96 Who is the Settlor?

97 Multiple Settlors

98 Statutory Tax Indemnities

99 Situs of Assets for IHT

100 Situs of Assets for CGT

101 Control Connected Close and Related Expressions

102 Participation & % Investment Tests

103 Permanent Establishment and Branch/Agency

104 Post-Brexit EU Law

Double Taxation Agreements IT/CGT:

105 Double Taxation Arrangements: Introduction

106 DTA Anti-abuse Rules

107 Limitation on Benefits

108 Credit for Foreign Tax

109 Non-discrimination

Double Taxation Agreements: IHT:

110 IHT Double Taxation Treaties: Introduction

111 IHT DTAs: India, Pakistan, Italy, France

112 IHT DTA: Netherlands

113 IHT DTA: South Africa

114 IHT DTA: Switzerland

115 IHT DTA: USA

116 Credit for Foreign IHT

Administration:

117 Reporting and Compliance

118 Tax Return Filing Position

119 Claims

120 Collection of Tax from UK Representatives

121 Reporting and Compliance: IHT

122 Penalties

123 Failure to Prevent Tax Evasion

124 Common Reporting Standard

125 Trust Registration (TRS)

126 Reporting Offshore Trusts

127 International Movement of Capital: Reports

128 Money Laundering

Appendices

Words & Concepts:

Appendix 1 Words of Dispute

Appendix 2 Common Legal Expressions

Appendix 3 Family Terminology

Appendix 4 Consideration/Arm's Length/Full Value

Appendix 5 Commercial/View to Profit

Appendix 6 Beneficial Ownership/Entitlement

Appendix 7 Offshore Fund/CIS/OEIC

Appendix 8 What Do We Mean by "Real"

Construction of Statutes:

Appendix 9 Deeming Provisions

Appendix 10 Purpose of Statute

Special Taxpayers:

Appendix 11 Parliamentarians

Appendix 12 Visiting Forces

Appendix 13 Students and Teachers

Tax Reform:

Appendix 14 How to Improve Residence and Domicile Taxation

Appendix 15 Reform of Offshore Anti-avoidance Law

Appendix 16 The Wisdom of Parliament

New 2022/23 edition

The new 2022/23 edition of Taxation of Non-Residents and Foreign Domiciliaries is now available online and and available in paper form.

To access TFD online, you will need an online licence. To obtain this, go to the publishers website or email [email protected]

Licences for the 2021/22 edition will no longer be valid from 6 April 2022.

If you are an academic or other non-tax practitioner who wants access for research purposes, contact James Kessler

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Chapter 1 Foreign Domicile: Tax Policy
Chapter 2 Tax Avoidance.

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If you want further advice

If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler KC or other members of his chambers to advise. See How to instruct James Kessler KC.

Archive editions

There are archive editions for years since 2003/04. These will be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.

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Contact

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Technical notes

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