Home is where the heart is. <\/p>\n\n\n\n
And it really can be, but when it comes to the nitty gritty legality of it all, the government likes to know exactly where you consider your permanent home. It\u2019s called your domicile. So while you consider where you grew up or where your family is from your home, your domicile refers to a place you permanently reside and have a strong connection with. <\/p>\n\n\n\n
Depending on what your domicile is, you\u2019ll be subject to different tax regulations. <\/p>\n\n\n<\/div> \n\n
Take a look at this article about the 2024 Spring Statement<\/a> with details on what changed for the non-dom status, due to come into effect from April 2025.<\/p>\n\n <\/div>\n<\/div> \n\n Most of the time, your domicile of origin is the same place as your parents\u2019 domicile. It\u2019s usually your father\u2019s domicile, but if your parents weren\u2019t legally together when you were born, then your mother\u2019s domicile decides it. While the topic is vague (and as ever from HMRC, quite complicated), just know that it\u2019s separate from your nationality, citizenship, or residence. <\/p>\n\n\n\n Let\u2019s take a look at this example to wrap our heads around it.<\/p>\n\n\n<\/div> \n\n Leilah\u2019s mum is from Spain and her dad is from Morocco. Her parents are married and they have moved to the UK, where they\u2019ve lived for the past 10 years, however their domiciles still remain Spain and Morocco, respectively.<\/p>\n <\/p>\n When Leilah was born, both their domiciles of choice were the UK. Leilah\u2019s domicile of origin is therefore now the UK. After university, Leilah decides she wants to move to Spain permanently with her new partner. They plan to have children there and are looking to buy their first home as soon as they move over.<\/p>\n <\/p>\n Leilah would like to acquire a domicile of choice.<\/p>\n\n <\/div>\n<\/div> \n\n A domicile of choice is essentially just changing your domicile from your domicile of origin to another country. When you decide you want to acquire a domicile of choice, two things need to happen: <\/p>\n\n\n\n These are the minimum requirements that would allow the government to consider your new home as your domicile of choice. Here\u2019s how it works:<\/p>\n\n\n\n Clear intention<\/p>\n\n\n\n To do this, you need to demonstrate that you intend to remain in your chosen country indefinitely. This means minimising your connections with the UK, or your domicile of origin. *Cue dramatic music*<\/p>\n\n\n\n Residency<\/p>\n\n\n\n <\/p>\n\n\n<\/div> \n\n \u2192 You’ve always wanted to live in a specific country (hello sun, sand and sea \ud83c\udf0a)<\/p>\n <\/p>\n \u2192 You want to move closer to your family, perhaps to take care of a relative<\/p>\n <\/p>\n \u2192 You want to raise a family elsewhere to provide better opportunities<\/p>\n\n <\/div>\n<\/div> \n\n There\u2019s no amount of time you should wait to start the process, which can sometimes take years. And you only need to be intentional in your actions to leave the UK and reside elsewhere.<\/p>\n\n\n\n Here\u2019s what we mean.<\/p>\n\n\n\n It\u2019s easy to say \u201cI\u2019m deciding to make this my permanent home\u201d and then just get on with it. But unfortunately, this alone isn\u2019t good enough to change your domicile. You must prove<\/em> that this new country is the one you plan to settle in.<\/p>\n\n\n\n Some examples include:<\/p>\n\n\n<\/div> \n\n It\u2019s all these considered together that allow you to officially \u201cbelong\u201d somewhere else. With these declarations and your actions, the government will make a decision as to whether or not you can acquire a domicile of choice.<\/p>\n\n\n\n HMRC may launch an enquiry about your status and may require various questions answered and documents from you. You can find the full list here<\/a>. <\/p>\n\n\n\n Good question. If you\u2019re trying to shed your domicile of origin, you need to be committed. There are things you can do, like the declarations of intention, that act as evidence that you intend to make the overseas country your domicile of choice. <\/p>\n\n\n\n If you acquire domicile of choice outside the UK:<\/p>\n\n\n\n If your domicile of origin is the UK, you will be liable to the usual taxes:<\/p>\n\n\n\nWhat is domicile of origin?<\/h2>\n\n\n\n
Example \ud83d\udcdd<\/h3>\n
And what about domicile of choice?<\/h2>\n\n\n\n
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There are many reasons you might want to change your domicile, aside from tax purposes. Here are a few examples of some \u201cwhys\u201d:<\/h3>\n
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What are declarations of intentions<\/h2>\n\n\n\n
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What does domicile of choice have to do with tax?<\/h2>\n\n\n\n
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