RESIDENCE & DOMICILE ADVICE

WHAT IS RESIDENCE AND DOMICILE ADVICE?

Your residency and domicile status can change the way you pay certain taxes. You may be a resident in one country but domiciled in another. In which case, you’d be a non-domiciled resident. This means you’d pay tax on overseas income in a different way. And we help people work out where to pay tax, how much tax to pay and the most efficient way of paying it.

Check out our new individual’s statutory residence flowchart HERE

Tax rules are very different depending on where you live. If you live in the UK but go to work in Germany, will you be taxed in the UK or in Germany? If you own property overseas and live in Hawaii for six months a year, where will you be classed as a resident for tax purposes?

It’s questions like this we often hear from clients. Because when it comes to residency and domicile, it can become very complex depending on your individual circumstances. People’s lives often change quickly too. There’s no one size fits all approach. And it can have a big influence on how much tax you pay – from income tax to inheritance tax to capital gains tax.

CHANGING PERCEPTIONS

Declaring the correct amount of overseas income is a hot topic at the moment. There’s the belief that people aren’t doing it correctly. And in 2018, HMRC dramatically increased the penalties for getting it wrong.

The perception amongst lots of people is that if you’re living in a different country and earning money in a different country, you only have to pay tax in that country. But that’s incorrect. If you’ve got UK income but you’re based overseas, you may pay tax on it, even though you’re overseas. It doesn’t matter if this income comes from property, shares, businesses or any other cash income. It’s something to think about.

BEING EFFICIENT IN HOW YOU DECLARE RESIDENCY

Our personal tax team are experienced in working with people who have property overseas. And we work with people living and earning in the UK, with a domicile somewhere else. We’ll consider your domicile, the tax implications of this and advise you on different tax structures such as tax-efficient offshore trusts. We’ll calculate where to pay tax in the future, how much tax to pay and the most efficient way of paying it.