020 8429 9245 Contact Us

Business Tips

What is the difference between residence and domicile for UK tax purposes?

When it comes to completing your UK self-assessment tax return, there is often a lot of confusion between your residence and your domicile with many believing that both concepts are the same. This is not the case as being a UK resident or UK domiciled can have very different consequences from a tax perspective.


This is your ‘long term home’ and there are 3 types of domicile.

  • Origin – at birth, you will take the domicile of you father (unless your parents are not married then you take the domicile of your mother).
  • Dependency – until the age of 16, if your father (or mother) changes domicile, your domicile will follow suit.
  • Choice – after 16, you are able to change your domicile.

The benefit of being non-UK domiciled is that the remittance vs arising basis election is available to you. This is covered in the remittance vs arising basis page found here.


The residency rules in the UK were amended as of 6 April 2013. To determine your residence, you will have to apply the Statutory Residence Tests (SRT) which consists of 3 tests and are applied in the following order:

  1. Automatic overseas Test,
  2. Automatic UK Test,
  3. Sufficient Ties Test.

Within each test, there are a number of specific tests to determine your residence and how you will be taxed in the UK.

If you would like more information or have any questions about how to determine your residence or domicile, then please do not hesitate to contact one of our tax specialists at 020 8429 9245 or email info@wisteria.co.uk.