What Factors Other Than Citizenship Will Be Taken Into Account In Determining My Domicile Status And, If I Do Become UK Domiciled, Can I Reverse The Position?

• Published date: 25 July 2023
• Subject Matter: Tax, Immigration, Inheritance Tax, General Immigration
• Law Firm: Forsters
• Author: John FitzGerald

As Alfie mentions, assuming that an individual does not have a UK domicile of choice, they will acquire a domicile of choice in the UK if (i) they reside in the UK (ii) with the intention of remaining here "permanently and indefinitely".

Whether an individual satisfies the second limb of the test can be hard to establish. Broadly speaking, an individual will have the necessary intention to remain in the UK permanently and indefinitely if they have decided to spend the rest of their life (or until "the end of their days") here, even if they do not consider the decision to be irrevocable.

It is critical that the individual is able to point to a contingency on the occurrence of which they will leave the UK. The important point to note is that the contingency upon which they will leave the UK must be "clearly foreseen and reasonably anticipated". This might include, for example, intending to leave the UK after a specific period of UK employment or upon retirement. The contingency must not be "only a vague possibility" and it must not be too indefinite. In one case, the judge commented that an individual intending to return home "if I make a fortune" or "when I've had enough of it" would not be a certain enough contingency. Similarly, it has been stated that "some sentiment about dying in the land of his fathers" would be insufficient.

In the event of a challenge by HMRC, the courts will look at a multitude of factors in addition to citizenship, including:

1. social and family interests;
2. membership of clubs;
3. ownership of property;
4. exercising of political rights;
5. business interests;
6. desire to be buried in the country of domicile; and
7. visiting the...