INTM602100 | Transfer of assets abroad: Non-domiciled individuals taxation up to 5 April 2025: The benefits charge - introduction

The basic provisions that describe whether an individual is liable to a benefits charge are set out in INTM601400 onwards.

This part of the manual proceeds on the basis that a potential charge is established, and it considers the possible effect on that charge if the individual was not UK domiciled.

Whether an individual was non-UK domiciled is not a matter for this manual.

This part of the manual looks at the effect of being non-UK domiciled on the benefits charge in three stages:

• the position up to 5 April 2005 under ICTA88/S740 - before the introduction of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA)

• the position between 6 April 2005 and 5 April 2008 under ICTA88/S740 - after the introduction of ITTOIA and the effect of the introduction of Income Tax Act 2007

• the position from 6 April 2008 to 5 April 2025 under ITA07/S735 - after changes brought in by Finance Act 2008

From 6 April 2017 to 5 April 2025 special rules were introduced which brought non-UK domiciled settlors of certain non-resident trusts within the scope of the benefits charge. For details of the treatment of such settlements: see INTM603180 onwards.

From 6 April 2025 the rules around the taxation of non-UK domiciled individuals ended and individuals are taxable based on their residence position only. This section on non-domiciled individuals only applies to the treatment of non-UK domiciled individuals for the years up to and including 2024 - 2025. Detailed guidance on the changes from 6 April 2025 can be found at INTM603615 onwards.

Any issues concerning whether an individual is UK resident or UK domiciled should be determined from the separate guidance on those subjects or by consulting the relevant technical specialist in Personal Tax International, Liverpool: see INTM604440.