Overseas Income – Income Tax

Deemed Domicile

There are two situations when an individual can be DEEMED DOMICILE for INCOME TAX and CAPITAL GAINS TAX.

  • LONG TERM RESIDENTS: if he/she has been UK RESIDENT for 15 of the previous 20 tax years. (UNLESS: they have NOT been UK RESIDENT in ANY tax year beginning 5 April 2017.
  • FORMERLY DOMICILED RESIDENTS: Born in the UK AND domicile of origin in the UK AND UK RESIDENT in that tax year.

Non UK Resident

A NON-UK RESIDENT’S OVERSEAS INCOME is NOT TAXABLE. It is EXEMPT. The individual is only taxed on their UK INCOME.

UK Resident + UK Domiciled

A UK RESIDENT and UK DOMICILED individual is TAXED on their OVERSEAS INCOME on an ARISING basis. And of course, is always TAXED on their UK INCOME on an ARISING basis.

Double Taxation Relief is available.

UK Resident + Non-UK Domiciled: UK + Overseas Income