Residence:

The UK decides residence status using the Statutory Residence Test (SRT). This test looks at:

• How many days you spend in the UK each tax year

• Whether you have a home here

• Your work, family, and accommodation ties

If you spend 183 days or more in the UK, you’re automatically considered UK resident. However, even if you spend fewer days, other connections can make you resident under the SRT. 

​Domicile:
Your domicile is usually the country you consider your permanent home — where your roots or family connections are. You can live abroad for many years and still keep your original domicile unless you take clear steps to change it.

The UK treats domicile separately from residence. For tax purposes:

• If you’re UK resident and UK domiciled, you’re taxed on your worldwide income and gains.

• If you’re UK resident but non-domiciled, you can usually choose to pay UK tax only on your UK income and on foreign income you bring into the UK (the remittance basis). (gov.uk)

However, if you live in the UK for many years (usually 15 out of 20), you may be treated as deemed domiciled — and taxed on worldwide income.

How I can Money Tax Smart help:
I review your situation before or after arrival in the UK, explain how residence and domicile apply to you, and prepare a clear summary of how your global income would be taxed. This includes:

• Determining if you qualify as UK resident under the SRT

• Explaining whether you can claim the remittance basis

• Advising how to organise income, investments, or trusts before arrival

• Coordinating with overseas advisers to prevent double taxation.

For more information Contact Us.

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Learn More. View Understanding FIG

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