Statutory Residence Tax (SRT)
Commencing from 6 April 2013, the UK has introduced a statutory residence test to determine if an individual is UK resident (or not) for a particular tax year. The test only applies for tax years commencing from 6 April 2013.
This legislation is the culmination of much work on making the UK system more simple and fair to assess whether someone is UK resident or not. There are major tax implications of being UK resident or not, and MG Group can offer you proactive advice on assessing your position and situation.
Domicile is a subtle but very important concept in taxation - in respect of both income tax and capital gains tax. It is important to consider that domicile is much more permanent than residency. Domicile can remain in a particular country, even after an individual has left the country. In the UK, domicile will normally be determined based on someone's Father, but this can change if other important factors change, such as the place that the individual considers home, or if they marry and become settled in a different country. Domicile can be broken down into mainly three types:
- domicile of origin
- domicile of dependence
- domicile of choice
Domicile is important in taxation because it will affect the treatment of income tax or capital gains, and will also impact on an individual's estate when considering inheritance tax implications.
Individuals who are UK resident but not UK domiciled need to consider how they wish to be taxed on their foreign income and capital gains. This is a complex area and specialist advice should be sought. MG Group are experts in this field and would be delighted to assist in determining domicile and whether the "remittance basis" applies to your situation.