In the United Kingdom, deemed domicile refers to a person who is treated as having a UK domicile for tax purposes, even if their domicile of origin or choice is in another country.
The rules for deemed domicile in the UK were changed in April 2017. Under the current rules, an individual will be deemed domiciled in the UK for tax purposes if they meet one of the following conditions:
- They were born in the UK and had a UK domicile of origin, but subsequently acquired a domicile of choice outside the UK.
- They have been resident in the UK for at least 15 out of the previous 20 tax years.
Under these rules, individuals who are deemed domiciled in the UK will be subject to UK income tax, capital gains tax, and inheritance tax on their worldwide income and assets. This means that they will be subject to UK tax on income and gains arising outside the UK, as well as on any assets they own overseas.
It’s important to note that the rules for deemed domicile in the UK can be complex and may change over time, so it’s always advisable to seek professional advice if you are unsure about your tax or inheritance tax status.