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Overseas Tax



There are three main types of domiciles:


Domicile of Origin

Domicile of origin means parent’s origin that need not to be the country a person born in.

Domicile of Choice

Moving to settle in another country, the UK, at the age of 16 or above means domicile of choice, you own legally. Domicile of choice status can be obtained in case of you leave your native country. Since it is a legal migration matter, he/she can obtain another domicile of choice.


Domicile of Dependence

If a person is dependent on another person, until they have legal capacity to change it, your domicile will remain that of a person.

Tax Implications

Domicile applies on you only in the condition if you own foreign income or gains during a tax year. This type of income comes under income tax or capital gains tax. But if you did not gain any foreign income, then you do not need to be concerned about it. Obviously, your domicile status has no effect on UK income tax issues system.

UK overseas tax verification area is vast. Intense examination on their background over the period will be checked.

Rarely HMRC checks one’s claim to be domiciled in the UK. If you say you are non-domicile in the UK, HMRC will especially check such authenticity. In case of claim of the UK born, HMRC will especially check the authenticity.




For HMRC tax purposes, obligation is that, if you live 183 days in the UK you will be considered a resident; it means you are a tax liable person. For residents, if you need to work abroad more than a year, you must not be back more than 91 days on average out of 365 days otherwise will be considered a tax liable, which means being a resident you will have to pay UK tax on all your income, whether it’s from the UK or abroad income.

In another condition, you can live in the UK permanently if such opportunity comes or stay for three years or more you will be considered resident on the date of arrival.



According to UK taxation system, persons in the non-resident UK status will pay taxes only on their income gain in the UK. According to tax rule, they don’t pay tax in the UK on their foreign income.

In case of an expatriate (a person who lives outside their native country) who lives in the UK, working abroad full year will make them become non-resident for UK tax purpose. This will benefit them paying income tax at local at lower rate. During the time they are working abroad, they can avoid fixed capital gain tax acquired and disposed during the period of non-residence. They also avoid paying capital gains tax on any income gains on stocks and bonds like assets acquired and disposed during that period of non-residence in the UK.