RDRM25080 | DOMICILE: Deemed domicile: Other issues

From 6 April 2025, the concept of domicile as a relevant connecting factor in the tax system has been replaced by a system based on tax residence. This guidance remains for reference purposes only.

Unlike domicile under common law, deemed domicile status is not passed from parent to child.

Example

Magnus has a domicile of origin in Sweden, but he is deemed domiciled in the UK from 2017-2018 under Condition B. He has a daughter, Ingrid aged 16, who was born in Sweden and has a Swedish domicile of origin. She has lived with Magnus in the UK since his divorce in March 2013.

Ingrid remains in the UK until January 2027 when, after marrying, she returns to Sweden to live. For the duration of her time in the UK Ingrid will be treated as UK resident but will not be deemed domiciled in the UK for tax purposes. If ingrid had not returned to Sweden, she would be deemed domiciled under Condition B from 6 April 2028.

Individuals who meet the deemed domicile provisions will no longer be able to claim the remittance basis of taxation, unless they meet certain conditions, and will be assessed on their worldwide income and gains on the arising basis. (See RDRM3000 onwards for more information on the remittance basis).