IHTM47041 | Long-term UK residence: Spousal domicile elections before 6 April 2025 – transitional rules

Domicile elections made before 30 October 2024 will remain in place, with the spouse making the election treated as deemed UK domiciled until 5 April 2025 and then long-term UK resident from 6 April 2025 until 4 consecutive tax years of non-residence have elapsed.

It will also be possible to make a domicile election on or after 30 October 2024 and before 6 April 2025, with the spouse making the election treated as deemed UK domiciled until 5 April 2025 and then long-term UK resident from 6 April 2025 until 10 consecutive tax years of non-residence have elapsed.

After 6 April 2025, it will still be possible to make a domicile election which covers a period prior to 6 April 2025. In this case, the spouse making the election will be treated as deemed UK domiciled until 5 April 2025 and then long-term resident from 6 April 2025 until 10 consecutive tax years of non-residence have elapsed.

Once an election has ended due to the requisite period of non-UK residence, the electing spouse’s IHT position going forward will depend on whether they satisfy the long-term UK residence test under IHTA84/S6A (IHTM47000).

Examples

Example 1

Anastasia makes a domicile spousal election on 1 October 2024 and she will be treated as deemed domiciled until 5 April 2025 and then long-term UK resident from 6 April 2025 until 4 successive tax years of non-UK residence have elapsed.

Anastasia leaves the UK in December 2028 and does not return. She will cease to be a long-term UK resident after 5 April 2033.

Example 2

Alberto has made a domicile spousal election on 1 December 2024 and he will be treated as deemed domiciled until 5 April 2025 and then long-term UK resident from 6 April 2025 until 10 successive tax years of non-UK residence have elapsed.

Alberto leaves the UK in February 2026 and his first year of non-residence is 2026-27. Alberto will continue to be a long-term UK resident until 10 successive years of non-UK residence have elapsed. If Alberto does not return to the UK, he will achieve this at the end of the tax year 2035-36.

Example 3

Nicky makes a domicile spousal election on 20 May 2025 to be effective from 5 November 2024. She will be treated as UK domiciled from 5 November 2025 until 5 April 2025 and then treated as a long-term UK resident from 6 April 2025 onwards until she achieves 10 consecutive tax years of non-UK residence.

Nicky is non-UK resident when she makes the election. Therefore, her first tax year of non-UK residence is 2025-26.

If Nicky does not reside in the UK at any point, she will achieve 10 successive tax years of non-UK residence by the end of the tax year 2034-35.