Tax Guide: Non-UK domiciliary looking to Be Resident in the UK 1 | Page 4

For ( 4 ) above , individual passes this test if he or she has spent more than 90 days in the UK in either or both of the previous two tax years .
For ( 5 ) above , applies to individuals ceasing to be UK resident .
The number of ties that will be required to make individual UK tax resident will depend on the number of days that he or she has spent in the UK in the current tax year . The table below details the minimum number of UK ties required to make individual a UK tax resident under the sufficient ties test :
Days spent in the UK Fewer than 16 days
Number of ties
Always non-resident 16-45 days Always non-resident 46-90 days 4 91-120 days 3 121-182 days 2 183 days or more Always resident
It should be noted that it is possible to be tax resident in two jurisdictions . Where this apply , an individual ’ s country of residence may be determined by the application of a double tax treaty . Consequently , such an individual may not be taxed as a UK resident despite having moved to the UK and satisfying the rules for becoming UK tax resident .
3 . Tax implications The tax implications of moving to the UK also depend on an individual ’ s country of domicile . Domicile is a concept of UK general law that applies for a number of purposes in addition to taxation .
An individual is very broadly , domiciled in the country that constitutes his permanent home . At birth an individual acquires a ‘ domicile of origin ’, normally from his father . This may be displaced by a ‘ domicile of choice ’
Any individual who is tax resident in the UK but is domiciled outside the UK is entitled to use the special basis of taxation known as the remittance basis . The essence of this is that although UK income and gains are immediately taxable , non- UK income and gains are not taxable , unless and until the relevant proceeds are brought into the UK .
Generally , the remittance basis must be claimed in tax returns , and for longerterm UK residents there is typically a " fee " that must be paid if the remittance basis is to be used .
Where an individual intends to become resident in the UK as a remittance basis user , it is important that he / she takes expert tax advice regarding " pre-arrival " steps , to be undertaken before UK residence begins . Such steps need to be