Domicile is an important concept to consider whenever you are tax planning, and especially if you have ties in the UK and overseas.
Domicile ultimately defines whether or not you’ll be caught in the UK Inheritance Tax net, and likely to face a possible, and substantial, 40% tax charge on your UK (and even worldwide) assets.
There are other consequences too. All the while you’re UK tax resident, your exposure to UK Income Tax and UK Capital Gains Tax is ruled by your domicile status.
Understanding domicile, and how it affects your wealth, is a crucial step in any solid financial plan.
What you’ll learn in this guide:
- What is domicile?
- Why is domicile so important?
- The difference between your domicile and tax residence status
- How to work out where you are domiciled
- The different types of domicile
- Whether it’s possible to change your domicile status