The short version: Non-domiciled (or “non-dom”) status applies to people who live in the UK but consider their permanent home to be elsewhere. It used to come with significant tax advantages, but these are being phased out.
How did it work?
Non-doms could choose to only pay UK tax on money they brought into the UK. Foreign income and gains kept overseas weren’t taxed here. This was called the remittance basis. There was a charge for using it if you’d been here long enough.
What’s changing?
The non-dom regime is being abolished. From April 2025, new rules apply. Long term UK residents will be taxed on their worldwide income regardless of domicile status. There are transitional arrangements for people currently using the remittance basis.
How is domicile determined?
Your domicile of origin is usually where your father considered his permanent home when you were born. It can change if you move abroad with the intention of staying permanently. It’s complicated and often requires professional advice.
Does this affect you?
If you’ve been relying on non-dom status, you need to review your position. The rules are changing significantly.
Unsure about your domicile status or how the changes affect you? Get in touch for advice.
