Domicile tax planning

If you’re non-domiciled in the UK, you may be looking for advice on how best to benefit from your status. Or you may be wondering if you meet the criteria of a non-domiciled resident. And if you do, what are the benefits and challenges?

The advantages are well known – protected offshore trusts and no UK income or capital gains tax on what you keep overseas. But there are also costs, such as the large charges non-doms can face after seven and 10 years and also the loss of access to the preferential non-domiciled tax regime for all taxes after 15 years. It can be beneficial to know your status and know your rights, because domicile is one of the most complex areas of taxation. And it’s become even more complicated following the introduction of new legislation in 2017.

The important thing is to be prepared, whether in the UK, on your way to the UK or about to be deemed domiciled after 15 tax years. Acting early can have a real impact on your finances. And anything you’re planning to pass on after you’re gone can be impacted by the decisions you make today. You might consider speaking to a trusted adviser with real expertise in this field.

Understanding your situation – benefiting from your status

Our experts are here to ensure you have the right plan to make the most of your status:

If you’re coming to or are already in the UK

  • Pre-arrival planning: Guiding you on the tax-efficient organisation of your financial affairs to help you manage you and your family’s financial needs while living in the UK.
  • Establishing your status in the UK: Helping you ascertain where your domicile of origin is and whether this has been superseded by a domicile of dependency or choice since then. Also if you're non UK-domiciled, when you will become deemed domiciled in the UK for all taxes.
  • Property: Advising on the implications, structuring and funding of UK property ownership.
  • Income and capital gains tax: Advising on the bear traps and tax reliefs for those staying in the UK for the short or medium term.
  • Inheritance tax: Advising on inheritance tax implications if you’ve been in the UK for several years or have settled in the UK permanently.
  • Offshore assets: Advising on existing structures and planning for offshore assets to meet your strategic goals.
  • Remittances: Structuring of remittances to enable tax-efficient movement of capital to the UK.

If you’re leaving the UK

  • Pre-departure planning: Advising on the tax-efficient organisation of your financial affairs to help you manage you and your family’s financial needs while living outside the UK.
  • Compliance: Helping you get advice on the destination country’s tax legislation and advising on how this interacts with UK tax legislation. We’ll also assist with any ongoing UK tax reporting obligations should you leave the UK to work.
  • Property: Advising on letting your UK property while you’re outside the UK, including the non-resident landlord scheme.

Expert advice

You can rely on the expertise of our advisers at Smith & Williamson. We’ve been advising on domicile tax changes for many years and have remained on top of a myriad of changes to this complicated legislation. That’s why it’s important that you don’t get an 'off-the-peg' solution – all of our advice is carefully tailored to your specific tax needs.

We are a member of Nexia International, a worldwide network of independent accounting and consulting firms, providing global reach and local knowledge on a best in class basis.

At Smith & Williamson we have broad expertise across financial planning, tax management and investment management. And we will work closely with your existing advisers, onshore and offshore lawyers, investment managers and property agents.