UK Residency & Domicile Rules - How Do They Apply To You? By - - PowerPoint PPT Presentation

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UK Residency & Domicile Rules - How Do They Apply To You? By - - PowerPoint PPT Presentation

May 17, 2023 176 likes •339 views

UK Residency & Domicile Rules - How Do They Apply To You? By Jeff Millington Who are JW Seagon? Our Relationships Independent insurance brokerage services, offering our clients with a trusted one-stop-shop for all their insurance needs

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UK Residency & Domicile Rules - How Do They Apply To You? By Jeff Millington

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24/07/2020 2

Who are JW Seagon?

11,000+

customers across Africa and beyond

40+

employees across 4 countries

20+

partnerships with leading local and international health, general and life insurers

Independent

insurance brokerage services, offering

  • ur clients with a trusted one-stop-shop

for all their insurance needs

25+

years of experience

Our Relationships

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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Residency and domicile in the UK

Jeff Millington – Withers LLP Private client tax director

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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Residency

  • Automatic ties to UK, be wary of second automatic tie.
  • Sufficient ties test
  • Family tie
  • Accommodation tie
  • Work tie
  • 90 day tie
  • Exceptional Circumstances – Covid 19
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Why ties matter and evidence of travel

  • UK resident by accident – taxation implications
  • Domicile of origin outside the UK
  • Domicile of origin in the UK
  • Keeping records of travel into and out of UK
  • Reporting to the UK.
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Residency continued

  • Keep account of days in UK. Keep records.
  • Be aware of ties.
  • Accommodation tie is wide reaching.
  • How wide does a family tie go?
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Residency continued

  • Coming to the UK to live – when to come.
  • Split year treatment in year of arrival.
  • Leaving the UK, days in the UK are less for leavers than

arrivers.

  • Split year treatment in year of departure.
  • Losing domicile of choice – four year itch
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Domicile

  • Domicile of origin
  • Domicile of choice
  • Maintaining your domicile of choice.
  • Implications for Inheritance Tax (IHT) on domicile.
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Inheritance Tax – changes in respect of UK residential property

  • Historic position
  • Changes brought in, in 2017.
  • Beware loans to buy property for UK residents.
  • Limiting exposure to IHT
  • Life insurance policies
  • Gifting – but without reservation of benefit
  • Properties already in trust?
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Inheritance Tax - continued

  • Tax rates and exposure to IHT. Practicalities of paying

HMRC.

  • Implications of gifting property.
  • Non-resident capital gains tax regime.
  • Re-valuation of property
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

IHT – other UK assets

  • Trading businesses in the UK.
  • Farm ownership in the UK.
  • Investing in stocks and shares in the UK.
  • Commercial property
  • The use of trusts
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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Possible changes to IHT

  • Property held in person or through a company
  • Wealth tax? How would it be applied and to whom?
  • Increase to IHT?
  • Changes to IHT with regards to lifetime gifts etc.
  • Lifetime gifts reduce to five years as a PET, abolish taper

relief.

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London l Cambridge l Geneva l Milan l Padua l Sydney l Hong Kong l Singapore l Tokyo New York l New Haven l Greenwich l Los Angeles l Rancho Santa Fe l San Diego l San Francisco l British Virgin Islands

Conclusions

  • Residency in the UK is still complex.
  • Be aware of changes to domicile for UK domiciled

individuals.

  • Property ownership has changed be wary of debt on

property.

  • Look at ways to mitigate IHT – difficult on residential

property.

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Q&A

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Thank you for your time

www.jwseagon.com

To find out more about our Insurance products call JW Seagon today on +254 709 455 000|visit www.jwseagon.com| email us on talk2us@jwseagon.com

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