RDRM25060 - Domicile: Deemed domicile: Individuals who have acquired a domicile of choice outside of the UK

An individual who was born in the UK and has a UK domicile of origin at birth can acquire a domicile of choice outside the UK at common law; if they have resided in another country or law territory with the intention of remaining there permanently (such as Kamal’s father in the example at RDRM25020). However, if such an individual returns to the UK on or after 6 April 2017 and becomes UK resident for that year, they will automatically be deemed domiciled in the UK for tax purposes, (Condition A).

Example

George was born in the UK with a UK domicile of origin. At 19 years old he is awarded a scholarship to study at a university in Massachusetts.

After finishing his education he makes the decision to settle permanently in Massachusetts, marries a US citizen and has 3 children and considers that he has acquired a domicile of choice in Massachusetts.

On 10 May 2018, aged 40 George is offered his dream job, based in London. He decides to return to the UK for the next 5 years, arriving on 30 May 2018, after which time he intends to return to Massachusetts indefinitely.

He rents out his US property on a long term lease becasue all his family are coming to the UK with him.

George becomes UK resident for tax purposes and he will also automatically become deemed domiciled upon his arrival, even though he intends to return to Massachusetts to live indefinitely once the 5 years have expired.

This is becasue George was born in the UK, has a UK domicile of origin at birth and is UK resident. He has met Condition A.