What is domicile for UK tax purposes?
Answered 17 March 2026
Here is a comprehensive explanation of domicile for UK tax purposes.
What the law says
Deemed domicile — statutory rules (ITA 2007, s.835BA)
From 6 April 2017, an individual who is not domiciled in the UK at common law is treated as domiciled in the UK for all tax purposes if either of two conditions is met:
- Condition A: The individual was born in the UK, has a UK domicile of origin, and was UK resident for 2017–18 or a later year.
- Condition B: The individual has been UK resident for at least 15 of the 20 tax years immediately before the relevant tax year.
Important: From 6 April 2025, the concept of domicile as a relevant connecting factor in the tax system has been replaced by a system based on tax residence for most purposes. For IHT specifically, domicile is replaced by long-term UK residence (see IHTM47000).
HMRC guidance / practice
What is domicile?
Domicile is a general law (common law) concept that connects an individual to a system of personal law in the territory in which they have their 'permanent home'. For adults, this is normally the territory in which they intend to live permanently or indefinitely. It is distinct from nationality and residence.
The three types of common law domicile
There are three types of common law domicile:
- Domicile of origin – acquired at birth; for a child born within a marriage, this is the domicile of the father.
- Domicile of dependence – acquired by a minor when their parent changes domicile, or historically by a married woman from her husband (prior to 1 January 1974).
- Domicile of choice – acquired by an adult who resides in another country or law territory with the intention of remaining there permanently or indefinitely.
An individual can only have one domicile at a time.
Why domicile matters for tax
Domicile (and deemed domicile) is relevant to:
- Income Tax & Capital Gains Tax: A deemed domiciled individual cannot claim the remittance basis and is taxed on worldwide income and gains on the arising basis.
- Inheritance Tax (IHT) (pre-6 April 2025): Domicile limits the charge to IHT, affects the spouse/civil partner exemption, and governs the treatment of non-sterling bank accounts and excluded property settlements.
- Double taxation conventions: The 'fiscal domicile' of a taxpayer can affect whether property is removed from the IHT charge or whether a tax credit is available.
Deemed domicile is not inherited
Unlike common law domicile, deemed domicile status is not passed from parent to child.
Citation sources
Term Definition Arising Basis The basis of UK taxation for UK residents. It means that UK income and capital gains tax is due on all worldwide income and gains as they arise or accrue. Business Investment Relief An investment made by a relevant person using their foreign income or gains (or something derived from them) in a qualifying company from 6 April 2012. See RDRM34300 onwards. Connected Operation An operation which is effected with reference to a qualifying disposition RDRM33440, or with
From 6 April 2025, for inheritance tax purposes, domicile is replaced by long-term UK residence and you can find details of these rules at IHTM47000. The law of domicile is important for Inheritance Tax (IHT) for several reasons: It is a common law concept (IHTM13021) that will determine which rules apply for succession to personal (movable) property, wherever it is situated, and help establish 'who gets what'. It limits the charge to IHT to people domiciled in the UK or with assets sited in the
From 6 April 2017 new deemed domicile rules came into force which change the way such individuals are taxed. The new deemed domicile provisions are that an individual who is not domiciled in the UK at common law will be treated as domiciled in the UK for all tax purposes. To become deemed domicile one of two conditions must be met - Condition A or Condition B. (Chapter 2 Part 14 ITA 2007 section 835BA) There are already existing deemed domicile rules for Inheritance Tax, but these are also chang
the age of majority on that date. ? (2) If the Appellant had a domicile of origin or dependence in England, did he acquire a domicile of choice in Israel when resident there in the period 1 January 1970 – an unidentified date March/April 1970? (3) If the Appellant’s domicile of origin or dependency prior to being resident in Israel was not England and/or he did in fact acquire a domicile of choice in Israel, did he subsequently acquire a domicile of choice such that he was domiciled in England i
From 6 April 2025, for inheritance tax purposes, domicile is replaced by long-term UK residence and you can find details of these rules at IHTM47000. There are three types of common law domicile: domicile of origin, domicile of dependence domicile of choice These different types of domicile are explained in detail in the Residence Domicile and Remittance Basis Manual (RDRM) (HMRC website). For Inheritance Tax purposes you must always remember that the deemed domicile provisions of IHTA84/S267 (
From 6 April 2025, the concept of domicile as a relevant connecting factor in the tax system has been replaced by a system based on tax residence. This guidance remains for reference purposes only. The common law position of married women prior to 1 January 1974 was that the domicile of a married woman was that of her husband, that is, she acquired a domicile of dependence from him. Her domicile thus changed with his. This was the case throughout the UK. A void marriage has no legal effect, so a
If you aren't domiciled in the UK under common law, you are treated as domiciled in the UK for all tax purposes if either Condition A or Condition B is met. Condition A - to meet this condition you must: be born in the UK have the UK as your domicile of origin be resident in the UK for 2017-2018, or later years Condition B Condition B is met when you've been UK resident for at least 15 of the 20 tax years immediately before the relevant tax year. If you are deemed domiciled in the UK, you will
From 6 April 2025, the concept of domicile as a relevant connecting factor in the tax system has been replaced by a system based on tax residence. This guidance remains for reference purposes only. Unlike domicile under common law, deemed domicile status is not passed from parent to child. Example Magnus has a domicile of origin in Sweden, but he is deemed domiciled in the UK from 2017-2018 under Condition B. He has a daughter, Ingrid aged 16, who was born in Sweden and has a Swedish domicile of