The UK government announced in its 2015 Summer Budget that it will treat any individual who has been resident in the UK for at least 15 of the past 20 tax years as deemed UK domiciled for tax purposes.
From the 16th year a foreign domiciliary will become deemed UK domiciled. Once deemed UK domiciled, an individual will no longer be able to use the remittance basis of tax, nor can they rely on any other rules for people who are not domiciled in the UK. Their foreign and UK assets will be subject to inheritance tax (IHT). The government intends these new rules to take effect from April 2017.
STEP has issued a guidance note on the clarification on deemed-domicile draft legislation. To read, click here
