Domicile meaning

1. Settlor Gather the following details about the settlor (or each settlor, where there is more than one): full name and courtesy title status date of birth address domicile nationality usual residence a schedule of assets and liabilities (for this purpose, a separate schedule is useful) 2. Name of the trust Confirm with the settlor what the trust should be named 3. ...

Use this checklist to identify which EU Member State’s courts are competent to hear a dispute. It does so by referencing the provisions of Regulation (EU) 1215/2012, Brussels I (recast), applied to allocate jurisdiction. The starting point is that proceedings should be brought against a defendant in the courts of the Member State where they are domiciled. That position is displaced by various specific rules. Some of those exceptions bite automatically, while others operate only where the claimant elects to invoke them. The articles are applied in the hierarchy shown in the table below: if the first provision is not engaged, consider the next, and proceed accordingly... Determining jurisdiction Type of jurisdiction Consideration Mandatory/by choice Brussels I (recast) Exclusive jurisdiction: in certain prescribed situations, the courts of an EU Member State have jurisdiction irrespective of any contrary party agreement or of the parties’ domicile...

STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 (FA 2025), which obtained Royal Assent on 20 March 2025, legislates to abolish the remittance basis of taxation and to introduce a residence-based regime from 6 April 2025. FA 2025 also removes domicile as the principal criterion for determining liability to inheritance tax. Further adjustments include: Amendments to the rules that define excluded property status Abolition of protected settlements status for offshore trusts Changes to overseas workday relief For information on these changes, see: Practice Notes: The abolition of the remittance basis of taxation from 2025–26 Practice Notes: A new residence-based regime for IHT from 2025–26 See also: Finance Bill Tracking Service: Key dates (Finance Bill 2025) Finance Act 2025 This table compares the principal taxes applicable to home ownership structures for UK residential property where the property is to be...

This diagram mirrors HMRC’s Flowchart 4, set out at paragraph 5.24 of the Guidance Note on residence, domicile and the remittance basis (RDR1). It is for use when a taxpayer clearly plans to depart the UK in the future...

Background to and scope of this flowchart An individual who conducts a regulated activity in the UK in the course of business, where no relevant exclusion or exemption applies, must be authorised under the Financial Services and Markets Act 2000 (FSMA 2000). For details and context on the consequences of carrying on a regulated activity without authorisation, consult Practice Note: The general prohibition and implications of its breach. For an explanation of what it means to carry on business in the UK, see Practice Notes: What does 'by way of business' mean? and Territorial scope of the general prohibition. For guidance on exemptions and exclusions that may apply in particular circumstances, refer to Practice Notes: Regulated activities—exempt persons and Exclusions and exemptions relating to the general prohibition—an introduction...

Flowchart This Flowchart sets out the questions to consider when deciding the applicable law in employment matters, namely which legal system governs an employment contract or employment relationship, and guides the assessment to identify the applicable rules in such cases. Brexit has no significant practical effect in this field. The reason is that Article 66 of the Withdrawal Agreement preserves the existing Rome I and Rome II framework beyond IP completion day (11 pm on 31 December 2020), ensuring continuity of approach. That position is implemented domestically by the Law Applicable to Contractual Obligations and Non Contractual Obligations (Amendment etc) (EU Exit) Regulations 2019, SI 2019/479, which took effect on IP completion day and applies for employment cases...

In this issue: Employment taxes VAT International Individuals and income tax Taxes management and litigation Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Employment taxes Appeal court rules that loans advanced through a remuneration trust were chargeable as disguised remuneration and that the linked costs were non-deductible (Marlborough DP Limited v HMRC). In Marlborough DP Ltd, the Court of Appeal dismissed the taxpayer’s case and upheld the Upper Tribunal (UT). It found that amounts lent to a director under a remuneration trust fell within the disguised remuneration regime in Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), as they were made in connection with employment. The Court further concluded that the associated payments were not allowable for corporation tax, since they were not incurred wholly and exclusively for the purposes of the company’s trade. See News Analysis: Court of Appeal...

In this issue: Wills Probate Trusts UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Contentious trusts and estates Scotland, Wales and Northern Ireland International Question of the week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&As Useful information Wills No line of sight—due execution and presence In the Estate of Kathleen Coady, District Judge Chloë Phillips delivered judgment in Coady v Coady PT-2023-BHM-000025 (Business & Property Courts in Birmingham (Probate)), addressing as a preliminary question whether a coronavirus (COVID-19) era ‘garden signing’ met section 9 of the Wills Act 1837. The court concluded it did not, rendering the 25 April 2020 Will invalid. Written by Charlotte John of Gatehouse Chambers. See News Analysis: No line of sight—due execution and presence In the Estate of Kathleen Coady. Probate...

D’Angelin v HMRC [2024] UKFTT 462 (TC) The taxpayer was UK-resident but not domiciled and used the remittance basis. In 2016 he brought £1.5m of overseas income to the UK and placed it into a UK company where he was the sole shareholder and director. That company operated providing advice to international clients and family-owned holdings. He claimed business investment relief under section 809VA of the Income Tax Act 2007 (ITA 2007) in relation to the investment, with the result that the £1.5m was treated as not remitted to the UK (and therefore not taxable). During 2017/18 he used the company credit card for private spending, from an iTunes subscription through to the personal use of a jet, and those outgoings were posted to his director’s loan account. The balance on that account peaked at about £71,000. At all times he held sufficient personal funds either to clear the loan account or to have met those expenses personally from his own funds, which were sufficient at all times to...

This Practice Note has been prepared in collaboration with Anthony Partridge of Ogier, Cayman Islands, and Wisdom Hon of Ogier, Hong Kong. Introduction For individuals who are not domiciled in the Cayman Islands but personally hold assets located in the Cayman Islands, they may put in place a separate Will governed by Cayman Islands law to dispose of those assets and ease the subsequent probate process. Under Cayman Islands law, the governing law for both the formal validity and the essential/material validity of a Will made by a person domiciled abroad depends on the nature of the assets concerned. For immovable property situated in the Cayman Islands, the applicable law is the lex situs, namely the law of the Cayman Islands. For movable property, including cash held in bank accounts or shares in Cayman Islands companies (such as Cayman Islands exempted companies), the applicable law is the law of the deceased’s last domicile. It should be noted that not all shares connected with the...

Allocation of jurisdiction within the UK under the CJJA 1982 This Practice Note explores how jurisdiction is apportioned across the UK under the Civil Jurisdiction and Judgments Act 1982 (CJJA 1982). It examines the scope of that regime and the conditions that must be satisfied for it to apply, and considers its interaction with Regulation 1215/2012, Brussels I (recast) (the Regulation). It sets out the primary rule together with the departures from it, and, lastly, addresses forum non conveniens in this setting. The CJJA’s intra-UK jurisdiction framework is designed to furnish rules allocating jurisdiction inside the UK itself. Distinct rules and factors arise when assessing whether UK courts possess jurisdiction over a claim that contains an international dimension. The UK comprises four countries, yet there are only three legal jurisdictions, and CJJA 1982, s 50, describes each as ‘parts of the UK’. England and Wales Scotland Northern Ireland Practitioners in England engaged in cross-border disputes must be cognisant of a range...

This Practice Note consolidates the HMRC Manuals tracker that featured weekly in the Private Client highlights from January 2021 to December 2024, arranged by HMRC Manual in reverse chronological order. It captures many of the key amendments to the HMRC Manuals set out below that will interest Private Client practitioners. For the combined tracker from January 2025 onwards, see Practice Note: Consolidated HMRC Manuals tracker 2025–26–Private Client. Avoidance Handling Process Manual Pages amended • Date of change • Comments Added: AHP1000, AHP1200, AHP1300, AHP1400, AHP1450, AHP2000, AHP2100, AHP2200, AHP2300, AHP3000, AHP3100, AHP3200, AHP3300, AHP3400, AHP3500, AHP4000, AHP4100, AHP4200, AHP4300, AHP4350, AHP4400, AHP4500, AHP4550 and AHP4570 Date: 29 September 2023 Summary: This new manual sets out HMRC’s method for managing tax avoidance risks across all taxes and HMRC directorates, aiming for consistency and effectiveness. The overview sections describe what HMRC regards as tax avoidance, as distinct from lawful tax planning. They also outline the role of iTAPE, a specialist network within HMRC that leads...

FORTHCOMING CHANGE: Potential changes to Wills Act 1837 The Law Commission’s review of wills culminated in a final report on 16 May 2025. Volume II contains a Draft Bill proposing replacement of the Wills Act 1837. For details of these proposals, including the published draft legislation, see Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: Draft Bill for a new Wills Act. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime The Finance Act 2025 (FA 2025), which received Royal Assent on 20 March 2025, implements the abolition of the remittance basis and introduces a residence-based regime from 6 April 2025. FA 2025 makes residence, rather than domicile, the main determinant of liability to inheritance tax. changes to the rules defining excluded property status; removal of protected settlements status for offshore trusts; and modifications to overseas workday relief. For further information, see Practice Notes: The abolition of the remittance basis of taxation...

FORTHCOMING CHANGE: Potential changes to Wills Act 1837 On 16 May 2025, the Law Commission’s review of Wills published its final report, formally setting out its conclusions, with Volume II containing a draft Bill intended to supersede the Wills Act 1837. For details of these proposals, including the published draft legislation, consult Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: draft Bill for a new Wills Act. STOP PRESS: Ending the non-dom regime and moving to a residence-based IHT regime. The Finance Act 2025 (FA 2025), which obtained Royal Assent on 20 March 2025, enacts legislation for the removal of the remittance basis of taxation and substitutes a residence-based system commencing on 6 April 2025. It also displaces domicile as the principal determinant of inheritance tax (IHT) liability for individuals. Further measures cover revisions to the rules for excluded property status, the removal of protected settlements status for offshore trusts, and alterations to overseas workday relief as applicable. For more on these reforms, see...

Key points Residence determines the scope of a person’s liability to UK income tax and capital gains tax (CGT). An individual’s tax residence is established under the Statutory Residence Test (SRT). A person can be tax resident in multiple countries at the same time, as each jurisdiction applies its own domestic rules. Someone who is not resident in the UK is taxed only on UK‑source income and on certain gains from disposing of UK assets, including residential property. Value added tax (VAT), stamp duty land tax (SDLT) and the Annual Tax on Enveloped Dwellings (ATED) may apply to both residents and non‑residents. Before 6 April 2025, domicile—rather than residence—was the principal factor in determining exposure to inheritance tax (IHT). From 6 April 2025, IHT liability is largely linked to the period an individual has been resident in the UK. Residence of individuals—summary An individual’s UK tax residence is relevant when determining liability to income tax and CGT. Those...

Under section 55A of the Family Law Act 1986 (FLA 1986), a party can apply to either the Family Court or the High Court for a declaration determining whether a person named in the application is, or was, the parent of another individual in question. The court’s authority depends on domicile or habitual residence in England and Wales, as set out in FLA 1986, s 55A(2). Where the application is successful, and a declaration of parentage is granted by the court, it shall give notice to the Registrar General (FLA 1986, s 55A(7))...

The rules governing making a domicile election are contained within statutory sections 267ZA and 267ZB of the Inheritance Tax Act 1984 (IHTA 1984)...

As the individual was not domiciled in any part of the UK on death, only assets located in the UK may fall within the scope of inheritance tax (IHT). Assets situated outside the UK are treated as excluded property under section 6 of the Inheritance Tax Act 1984 (IHTA 1984) and, accordingly, do not comprise the deceased's estate as defined by IHTA 1984, s 5 ...