ATX Revision Notes

Residency & Domicile

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 UK Residency
This table is provided in the exam:

Ties

1. Close family in the UK (Wife, child).

2. House in UK which is used during the tax year. (at least 1 night during the tax year)

3. In the UK for more time than any other country.

4. In UK for more than 90 days in either of the previous 2 tax years.

5. Doing substantive work in the UK. (40 days or more)

UK Residency and Domicile

• If an individual is UK resident and UK domiciled, he is subject to UK income tax on his

worldwide income.

• If an individual is not UK resident, then he is only subject to UK income tax on his UK

income.

• If an individual is UK resident but not UK domiciled, he is subject to UK income tax on

his worldwide income BUT there are 2 options: Remittance or Arising basis

Arising basis

• The whole Overseas income will be taxed in the UK

• Personal Allowance (PA) will be deducted

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Remittance basis

• Only Income remitted back (sent back) to the UK will be taxed

• NO PA will be deducted

• Pay the Remittance Basis Charge (RBC)

RBC
£0 if UK resident for <7 of previous 9 tax years

£30,000 if UK resident for >=7 of previous 9 tax years

£60,000 if UK resident for >=12 of previous 14 tax years

If unremitted overseas income (Income that stays abroad) is <=£2,000 - the remittance
basis will apply automatically, there will be no RBC

If unremitted overseas income >£2,000 - there are two options - Remittance or Arising
basis (Explained above)

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