The purpose of this briefing is to outline the main rules as they currently apply and how they impact on individuals. From 2013/14 there will be significant changes, including the abolition of the concept of ordinary residence.
The key definitions are as follows:
- Your domicile is basically the country that you regard as your natural home. You can only have one domicile, which is usually, but not always, the country of your birth. You can change your domicile, but usually with some difficulty.
- Ordinary residence is the country where you normally live or make habitual visits, ie visits of three months or more a year over four consecutive years.
- Residence in the UK is normally established if you visit the UK for at least six months in any one tax year, or three months a year over a period of at least four consecutive years.