R03_flashcards_section_five

Question 1

What is the first condition for being automatically not resident in the UK?

Answer 1

Being in the UK for fewer than 16 days in the tax year.

This applies regardless of previous residence history.

Question 2

What is the condition for non-residents in the previous three years to be automatically not resident?

Answer 2

Fewer than 46 days in the UK in the current tax year.

This favours individuals returning after a period of non-residence.

Question 3

What condition applies for someone who leaves the UK to work full-time abroad to be automatically not resident?

Answer 3

They must work full-time abroad and spend fewer than 91 days in the UK, with fewer than 31 working days in the UK.

This requires strict limits on UK presence and UK work.

Question 4

What is the first condition for being automatically resident in the UK?

Answer 4

Spending 183 days or more in the UK in the tax year.

Presence alone triggers automatic UK residence.

Question 5

What is the second condition for automatic UK residence?

Answer 5

Having their only home in the UK.

The individual must live in this home for at least 30 days.

Question 6

What is the third condition for automatic UK residence?

Answer 6

Carrying out full-time work in the UK.

This applies regardless of the number of days present.

Question 7

What happens if neither automatic non-residence nor automatic residence rules apply?

Answer 7

The sufficient ties test is used.

This determines residence based on connections to the UK.

Question 8

What is the first sufficient tie under the sufficient ties test?

Answer 8

A spouse, civil partner, or minor children resident in the UK.

Family presence forms a significant tie.

Question 9

What is the second sufficient tie?

Answer 9

Having accessible and used accommodation in the UK.

Use of the accommodation triggers the tie.

Question 10

What is the third sufficient tie?

Answer 10

Doing 40 or more working days in the UK in the tax year.

Work activity strengthens the UK connection.

Question 11

What is the fourth sufficient tie?

Answer 11

Spending more than 90 days in the UK in each of the previous two years.

This reflects ongoing presence over time.

Question 12

What is the fifth sufficient tie?

Answer 12

Spending more time in the UK than in any other country.

This compares UK days with days spent in every other country individually.

Question 13

When are all five ties relevant?

Answer 13

For someone leaving the UK who was resident in the previous three years.

Departure requires more ties to break residence.

Question 14

When are only the first four ties relevant?

Answer 14

For someone arriving in the UK who was not resident in any of the previous three years.

Arrival requires fewer ties to determine residency.

Question 15

How is residence determined under the sufficient ties test?

Answer 15

By comparing the number of UK ties with the number of days spent in the UK.

More ties reduce the allowed UK days.

Question 16

What does the deeming rule apply to?

Answer 16

Individuals with three or more UK ties.

It treats certain days as days of presence.

Question 17

What is the first condition for the deeming rule?

Answer 17

Having three or more UK ties.

This threshold must be met for deeming to apply.

Question 18

What is the second condition for the deeming rule?

Answer 18

Being in the UK on more than 30 ‘qualifying days’.

Qualifying days are days where the person was in the UK but not at midnight.

Question 19

What is the third condition for the deeming rule?

Answer 19

Being UK resident in one or more of the previous three tax years.

This ensures the rule applies only to individuals with recent residency.

Question 20

What does the deeming rule do once the conditions are met?

Answer 20

It counts all qualifying days after the first 30 as days of UK presence.

This increases the total UK day count for residence purposes.

Question 21

What is domicile?

Answer 21

The country an individual regards as their permanent home.

It is a deeper concept than residence.

Question 22

Can a person have more than one domicile?

Answer 22

No.

UK law allows only one domicile at a time.

Question 23

What is domicile of origin?

Answer 23

The domicile a child acquires at birth.

Usually follows the father’s domicile, or the mother’s if the child is illegitimate.

Question 24

Until what age does a child’s domicile follow their parent’s domicile?

Answer 24

Until age 16.

After this, domicile of choice may apply.

Question 25

What is **domicile of choice**?

Answer 25

A domicile acquired by moving to a new country with intent to live there permanently. ## Footnote Both residence and intention are required.

Question 26

What are indicators of acquiring a **domicile of choice**?

Answer 26

* Living abroad * Intent to stay * Purchasing property * Selling UK property * Gaining citizenship ## Footnote HMRC evaluates these behavioural factors.

Question 27

What is the **15-out-of-20 deemed domicile rule**?

Answer 27

Being UK resident for 15 of the previous 20 years makes a person deemed UK domiciled. ## Footnote This applies for Income Tax, CGT, and IHT under current rules.

Question 28

What additional rule applies to people born in the UK with a UK **domicile of origin**?

Answer 28

They become deemed domiciled for Income Tax and CGT immediately upon returning to UK residence. ## Footnote This does not require 15 years of UK residence.

Question 29

For IHT, how does the **domicile return rule** differ?

Answer 29

They must also have been UK resident in at least one of the previous two tax years. ## Footnote IHT requires this further condition.

Question 30

How long does a person keep UK domicile after **emigrating**?

Answer 30

For three years after acquiring a domicile of choice. ## Footnote This delays removal of UK domicile status.

Question 31

How long is UK deemed domicile kept under the **15/20 rule** after leaving the UK?

Answer 31

For six years for Income Tax and CGT, four years for IHT. ## Footnote This prevents immediate escape from UK tax by leaving.

Question 32

What is the UK tax liability of a **UK-domiciled resident**?

Answer 32

Taxed on worldwide income, gains, and assets for IHT. ## Footnote UK domicile triggers global tax exposure.

Question 33

What is the UK tax liability of a **UK-domiciled non-resident**?

Answer 33

No UK tax on foreign income or foreign gains. ## Footnote Residence still determines Income Tax and CGT scope.

Question 34

What is the UK tax liability of a **non-UK-domiciled resident** under current rules?

Answer 34

UK tax on UK income and gains plus the option to use the remittance basis. ## Footnote Foreign income and gains are taxed only if remitted to the UK.

Question 35

What is the UK tax liability of a **non-UK-domiciled non-resident**?

Answer 35

Only UK-source income may be taxable. ## Footnote They are outside the scope of UK tax on foreign assets and income.

Question 36

What major change begins on **6 April 2025** regarding domicile?

Answer 36

The concept of domicile for UK tax purposes will be replaced by a residence-based regime. ## Footnote Taxation will focus solely on residence, not domicile.

Question 37

What happens to the **remittance basis** under the new 2025 regime?

Answer 37

It is abolished. ## Footnote Non-domiciled residents will no longer be able to shield foreign income by not remitting it.

Question 38

What is the replacement regime for new UK residents from **2025**?

Answer 38

A four-year foreign income and gains exemption. ## Footnote New residents will not be taxed on foreign income or gains for their first four years of UK residence.

Question 39

Who qualifies for the **four-year foreign income and gains (FIG) exemption**?

Answer 39

Individuals who have not been UK resident in any of the previous ten tax years. ## Footnote This replaces the remittance basis eligibility rules.

Question 40

What happens after the **four-year FIG exemption** ends?

Answer 40

Worldwide taxation applies, with no domicile distinction. ## Footnote All residents become fully taxable on foreign income and gains.

Question 41

What happens to **long-term UK residents** from April 2025?

Answer 41

They will be taxed on worldwide income and gains regardless of their domicile. ## Footnote Domicile will no longer reduce UK tax exposure.

Question 42

Will domicile still matter for **IHT** after April 2025?

Answer 42

Yes, but under a transitional regime moving toward a full residence-based test. ## Footnote IHT rules will also shift away from domicile, but in phases.

Question 43

What is a **non-domiciled resident** under current pre-2025 rules?

Answer 43

Someone resident in the UK but with a permanent home (domicile) elsewhere. ## Footnote They may claim the remittance basis.

Question 44

How are **non-domiciled residents** taxed on unremitted foreign income under current rules?

Answer 44

It is not taxed in the UK. ## Footnote Only foreign income brought into the UK is taxed.

Question 45

Will **non-domiciled residents** retain any tax advantages after April 2025?

Answer 45

Only if they qualify for the new four-year FIG exemption. ## Footnote Otherwise, they lose all domicile-based advantages.