Do you know where you are really domiciled?
It might not be where you think…
Important Update: Reviewing Budget Implications
In light of the UK Budget announcement on 30th October 2024, which proposes a shift from a domicile-based to a residence-based taxation system, my team and I are closely examining the details. We are assessing the potential impacts and planning opportunities that may arise from these changes. This page will be updated shortly to reflect our comprehensive insights and recommendations. Please check back soon for the latest information.
You acquire this domicile if your parent (who determined your domicile of origin) acquires a new domicile whilst you are under the age of 16.
Then, there’s domicile of choice. This status is your right to sever ties with your domicile of origin and declare another place as your permanent home. However, it isn’t as easy as simply packing your bags and moving to sunny Spain, for instance.
To establish a domicile of choice, two primary conditions must be met:
For example, if you moved to Spain and bought a property, changed your banking arrangements, registered with local doctors, and expressed the intention to remain there indefinitely, you could argue for Spain as your domicile of choice. However, it’s worth noting that the burden of proof falls on you. Authorities often view claims of changed domicile with scepticism, especially if it seems like a strategic move to avoid taxes.
And if you do wish to elect a new domicile of choice it’s important you ensure this is possible. You can seek a legal opinion on whether it is achievable and obtain an official legal domicile opinion. This can be held on file with your Will so as to avoid any challenges during the probate process.
Don’t be fooled into thinking that just because you have lived somewhere outside of your original domiciled country you can simply elect that to be your new domicile.
Important Update: Reviewing Budget Implications
In light of the UK Budget announcement on 30th October 2024, which proposes a shift from a domicile-based to a residence-based taxation system, my team and I are closely examining the details. We are assessing the potential impacts and planning opportunities that may arise from these changes. This page will be updated shortly to reflect our comprehensive insights and recommendations. Please check back soon for the latest information.
Important Update: Reviewing Budget Implications
In light of the UK Budget announcement on 30th October 2024, which proposes a shift from a domicile-based to a residence-based taxation system, my team and I are closely examining the details. We are assessing the potential impacts and planning opportunities that may arise from these changes. This page will be updated shortly to reflect our comprehensive insights and recommendations. Please check back soon for the latest information.
Your domicile, be it of origin, choice, or deemed, holds sway over many aspects of your life. Most significantly, it plays a key role in taxation. Different jurisdictions have varying tax laws, and your domicile can significantly affect your liability.
Additionally, your domicile impacts your legal capacity and rights. It can determine the law applicable to your marriage and the distribution of your assets upon death. Therefore, it’s crucial to comprehend where your domicile is truly situated and the implications it carries.
A key point to understand is that the common law concept of domicile is completely distinct from residence.
An individual must have a domicile but can only have one country of domicile at a time. By contrast, it is perfectly possible to be considered a resident of more than one country in a tax year or indeed a resident of no country.
Domicile may be challenged on death, Those claiming non-dom status should share any evidence of intentions with family members or others who may find themselves defending a domicile challenge.
It’s important to understand the legal concept of domicile.
What is your domicile status?
Often individuals mix up the distinctions of residency and domicile and they are inherently unique. There are clear distinctions and differences between domicile and residency. Your domicile is more than your residential address.
It’s a complex legal concept that traverses the boundaries of international law, taxation, and personal rights. It could very well be different from where you live or even where you think your home is.
Jessica Cook LLB (Hons) Chartered MCSI
Private Client Adviser, Pensions Specialist
Meet Jessica Cook
It starts with a client’s life and ends with their investments, not the other way round. Helping people live rich and without regrets, rather than dying rich and with regrets. To help people improve their lives by bringing truth, understanding, and discipline to the choices they make every day.
I’m Jessica Cook, Wealth Adviser to international professionals and families across the globe. Featured in the 2022 Times Newspapers’ Guide to the UK’s top-rated Financial Advisers.
My background is law, and a former career with the Financial Times. I’m also a regular financial columnist for multiple publications.
Working in partnership at AES International as a Private Client Adviser means delivering the next generation of demonstrably beneficial services to our clients and creating positive change.
I work with absolute integrity and dedication to my clients’ needs. With an ongoing commitment to providing professional excellence in every aspect of the advisory role.
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Disclaimer: The content provided does not constitute advice nor does it constitute any offer or solicitation to offer a recommendation. It is for general purposes only and does not take into account your individual needs, and specific circumstances. The law of domicile is very complex. Advice should always be sought from a lawyer or practitioner with expertise in this area.