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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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if i was born in Belfast Northern Ireland, as was my father

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if i was born in Belfast Northern Ireland, as was my father and mother but I left at 17, lined in London, then left to work in the Africa ( i year), worked in and lived in Singapore (4 years), lived and worked and took citizenship in Australia for 20 years and now live in France am I eligable for Non-Dom status?
Hi.

Can you tell me why you wish to be able to establish non-UK domicile, what you are doing in France and what your long term intentions are as to where you will live for the rest of your life. Do you have any connections with the UK, ie a home, business etc.?
Customer: replied 4 years ago.

i intend to move back to the UK ultimately to be with aging family.


looking to buy a property as an investment in order to have a base howver curently living in France where i am using my own funds to do build a house and renovate another.

Thanks.

Take a look at the notes on domicile here.

Domicile is only relevant if you are concerned about Inheritance Tax and, if you are resident in the UK, if you have non-UK income/gains producing assets. If you are resident in the UK and UK domiciled, you will be liable to tax on your worldwide income and gains. If it is your intention to sell the properties in France once you have completed the work, so long as you are not resident in the UK for tax purposes, you will pay no UK tax on the profits.

HMRC in the UK will not agree that you are non-UK domiciled or otherwise until and if it becomes an issue. It's not just a matter of writing to them and telling them that you are no longer UK domiciled I'm afraid.

The fact that you intend to return to the UK doesn't help your case to establish non-UK domicile notwithstanding the fact that you have spent a long time out of the UK and you have Australian citizenship. It also doesn't help that you intend to have a home in the UK. You really need to divest yourself of all your economic connections with the UK to have any credibility as far as losing your UK domicile is concerned as well as establishing such connections in another country.

I hope this helps but let me know if you have any further questions.
Customer: replied 4 years ago.

Thanks. So I understand that if I seek NonDom status it is more appropriate to not buy property in the UK, to not live in the UK and to prove that I haven't in the Uk for 30 or so years

That would certainly help. Of course, you are free to holiday in the UK.

I'm not saying that you cannot own a property in the UK ever. What you need to do to be able to prove non-UK domicile is that the centre of your personal and economic interests lie outside the UK.

Even if you were non-UK domiciled, any UK property and assets that you owned at the time of your death would be liable to UK Inheritance Tax if their value exceeded the nil-rate band which is currently £325,000. IHT would be charged at 40% on the excesss over £325,000.
Customer: replied 4 years ago.

thank you very much. one last question. in order to proceed with non dom status is it a matter of opening a bank account in an appropriate place and filling in the form or is there a legal requirement to officially lodge an application for a non dom status in the UK?

As I said earlier, there isn't a process that ends with the tax office saying you are UK domiciled or not until there is an argument to be had over the matter. At that time, the matter will be looked at.

You will need to do more than open a bank account in a foreign country to establish a foreign domicile. Establishing non-UK domicile is not an overnight process and if you move around the world you are not establishing roots in another country. Had you stayed in Australia and made it clear that you intended to live there for the rest of your life, you would probably be able to say that you are non-UK domiciled but HMRC would not formally agree to that until a tax issue came up which was affected by your domicile status. You really need to be settled in a country to which you committing your personal and economic future.

If you lived in the UK but did not want to pay UK tax on non-UK source income, you would need to claim non-UK domicile status in your tax return. That's when the matter would be decided.
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