non-domiciled?

moneytroll

I was trying to search for precise definitions for "non-domicile" but couldn't find any definitive ones. What requirements must one meet in order to be acknowledged as a non-domicile?
I wasn't born in the UK but I am a EU citizen who spent the last 8-9 years in UK (studying and now working). I do not know whether I will be staying in the UK forever. Would I qualify for a non-domiciled status?
Could somebody explain this to me please?
thanks

Andy_Davies

I don't think you're going to get a precise definition and you probably need to get professional advice really but, one of the indicators is whether you intend to leave the UK in the future.

Why are you concerned abuot being non-domiciled, do you have or will you have any overseas earnings for example?

HMRC page is here http://www.hmrc.gov.uk/cnr/resdom.htm

moneytroll

many thanks.
the reason that i am asking is that i understood that if one is a non-domicile, there are greater flexibilities. but i want to understand the definitions/laws so that i don't break it by mistake.
but it does seem strange that the rules are so vague on this. i thought if you spent or worked a certain number of years in the UK, you will then automatically acquire a domiciled status.
is it really only to do with one's personal outlook/attitude towards the future? (or do you have to have a flight ticket already booked?)

Jeffinturkey

Can u be a 'citizea' of the EU ? I thought it was just a collection of countries - do u mean that you are a citizen of another country (not) that belongs to the EU ?

Jeffinturkey

Just correcting my typos

Can u be a 'citizen' of the EU ? I thought it was just a collection of countries - do u mean that you are a citizen of another country (not UK) that belongs to the EU ?

Cook_County

Domicile is not a question of tax law, but rather a matter of general law. It is relevant therefore for more than just tax. The UK has an unwritten constitution, which is why there is little statute law, rather a general interpretation of case law from the 14th century onwards.

One is domiciled at birth in the country where one's father is domiciled. If one settles permanently elsewhere then one can acquire a domicile of choice in that new jurisdiction.

The first question to be answered is therefore where your father was domiciled when you were born. If this was outside of the nations that constitute the United Kingdom then your domicile of origin is outside of the UK. The second question is whether you have acquired a domicile of choice within the UK. It appears not. The third question is whether this is material. You have not truly answered this.

You have however referred to non-domicile, which is impossible as you must be domiciled somewhere. This indicates that you would benefit from professional advice in this area.

moneytroll

Many thanks.
It's difficult for me to grasp the meaning of domicile as I realize it has nothing to do with where one is resident. UK seems to be the only country that has this "domicile" term. For example in Germany, you can be resident or non-resident, the domicile issue doesn't exist.
My question is, more precisely, which conditions one must fulfill in order to be recognized in the UK as a UK non-domicile? (From CC's response, it seems clearly that I am not a UK domicile. However, UK is the only place where I have a residency at the moment, while I have a passport from another EU country. I don't have the citizenship from the country where I was born anymore (the country, where my domicile should be, under this definition). But I am working now in UK (and paying taxes here) - so that is why I am confused when I came across this (rather peculiar) UK domicile issue.
If one wanted to acquire a UK domicile, how does one go about it? (I presume being ordinarily resident or getting a UK passport wouldn't be enough.)
It seems to be pretty clear that while you are a UK non-domicile, tax treatment from savings/earnings from overseas, for example, is different in UK (as long as they remain abroad). - that's why I posted my question on this tax board.
What other "implications" are assumed if you are a UK non-domicile? There surely must be some disadvantages too.

Cook_County

You are correct that in many circumstances (but not all) it can be financially advantageous to be domiciled outside of the United Kingdom.

We still do not know where your domicile of origin was (it may not be the same as your country of birth or your father's nationality at birth), nor whether you acquired a domicile of dependency during your childhood.

You are wrong to assume that only English, Welsh and Scottish and Northern Irish laws perceive domicile as relevant. Ireland and France (and Spain to a degree) all use domicile (with differing meanings) in determining tax; as do many US states.

Acquiring a domicile within the UK (not a UK domicile, because there is no such thing) is very straightforward. Relinquish your connections with your current domicile and acquire similar connections in the nation you choose (eg Scotland) together with an intention for permanent residence.

There is no choice if you think this may save you money beyond professional advice.

moneytroll

I will look into it. Many thanks for your help, C_C.
What sort of professionals would be able to give me more advice?
There are many expressions I don't quite understand: domicile of choice, domicile of dependency and what it means by definition to "relinquish connections".
My country of domicile should be Germany (in theory at least), since this is where I "moved my base to" after I left my birth country, but now I am working/resident in UK but might go back to Germany at some point. Though i do not have a residency in Germany anymore (in Germany, you can register/unregister yourself for residency at the police, unlike in UK where the residency is acquired automatically) i still hold a German passport. So i don't understand what my position is in terms of domicile at the moment...very confusing.

pchelpman

Take heed of what CC says. He knows his stuff.

This Revenue booklet will help give you THEIR take on the meanings of domicile and other related terms.

http://www.hmrc.gov.uk/pdfs/ir20.htm

Suggest you get advice from a CTA. The tax specialists. Web site here .......

http://www.tax.org.uk/