Resident, ordinary Res & Domicile

Hi Tina,

Resident/Ordinary Resident/
Somebody is classed as resident if they are in the UK for 183 days per tax year OR they are present in the UK on average 91 days per tax year for 4 consecutive tax years

NOR/
Is when there is less degree of permanence to yours stay in the UK.

NDOM/
Domicile is acquired at birth from the father, to change domicile an individual must sevre ties with their current domicile and settle in the new domicile with a view to remain their permanently.

Please also note that there is deemed domicile for inheritance tax purposes, this is where the individual has been resident in the UK for 17 out of the last 20 years in this case the individual will be subject to IHT on their worldwide assets

Income Tax/
UK earnings – non resident/Resident/O.Resident/Dom/Ndom tax UK earnings on arising basis

Foreign income – Domiciled+R/OR – tax on arising
Foreign income – Domiciled and NR/NOR – no tax on foreign income/gains

Foreign Income – Ndom+R/OR – can claim remittance basis (where the earnings are taxed on entering the UK, but as long as they remain offshore there will be no charge. Unless the individual has been resident in the UK for 7 out of 9 years in which case a remittance charge of 30k will be applied and if they have been resident in the UK for 12 out of 14 years then the charge increases to 50k. Also please note that if an individual does claim the remittance basis they will lose their Personal Allowance and Annual Exemption (capital gains)

Capital Gains/
Non resident – no capital gains at all on both UK and Foreign Gains
resident/OR and domiciled – Foreign gains tax on arising
resident/OR and not domiciled – tax foreign gains on remittance

I think this article will be good for you

https://www.accaglobal.co.uk/content/dam/acca/global/PDF-students/2012s/sa_jan13_p6uk_travellers.pdf

you are welcome, I think you first port of call and the easiest point to start from is that

regardless of domicile/non dom/resident or not resident etc UK income is ALWAYS taxed on arising basis there is no way to avoid being taxed on UK income basically.

Also try to understand that there are two different scenarios regarding income

arising – when the income is created e.g. at the end of the month for the average person in a normal PAYE job

OR

Remittance, where the money is only taxable upon receiving the money in the UK and not when the income is created say from foreign employment