The Importance of DomicilePrintPdfClose »

28/09/2011

Domicile is a Legal concept and in the UK is broadly equivalent to an individual's home country. Other countries have concepts of "domicile" but they do not all agree to the UK concept. This lack of an international standard can create confusion and difficulties.

Domicile is important because it is a factor which determines how a Tax charge could arise in a number of areas in the UK including:

1. Income Tax on foreign Investment and Employment Income

2. Capital Gains Tax on foreign situate assets

3. Inheritance Tax

It is also very important in determining how an individual's Estate should pass on death, particularly for individuals who own property in foreign jurisdictions.

This point is illustrated by a recent case which involved an individual working in France but domiciled in Belgium. Under the terms of his UK Will, he left all of his Estate to his uncle - the only relative who was informed of his death.

Several months later the deceased's family discovered that he had died and were claiming that as he was not domiciled in the UK at the time of his death, his Will was not valid. They believe his Estate should be administered according to Belgian Law. Under Belgian Law, the Testator's family stand to inherit his Estate.

If you own property in more than one jurisdiction it is important that you take specialist advice. A failure to do so may result in your estate not reaching your intended beneficiaries.

If you have concerns over your domicile status or own property overseas please contact us for advice.

Malcolm Emery

PARTNER
T: 01626 202355
Email Me