Individuals moving to or from the UK often overlook the importance of their ‘domicile’ status. Domicile is a concept that is distinct from ‘residence’ and failing to understand and clarify your domicile status can have substantial tax implications, writes Stuart Stobie, Managing Director of Sovereign Corporate & Trustee Services (SCATS) Ltd.
Managing Director, Sovereign Corporate and Trustee Services Limited
EXPLAINER
Long term UK expats may face huge UK tax charges
“The latest numbers from HMRC show people are passing on more and more to the taxman rather than their loved ones.” – The Daily Mail.
UK expats who have lived abroad for many years often remain UK-domiciled and therefore liable to UK Inheritance Tax (IHT). The rate of this tax might be considered penal. It is currently 40% on the total value of the estate of a deceased after the exemptions. It is an additional tax payable on capital accumulated during lifetime upon which tax has already been paid.
Many UK nationals who have lived abroad long term may assume their liabilities to UK tax have ended. Probably they are no longer liable to UK income and capital gains tax except on UK source gains and income – but they may well remain liable to UK IHT!
ASIA
Sovereign Trust Hong Kong appoints new Managing Director
Private Trust Company – A vehicle that allows a family to remain the control
Hong Kong gazettes draft law to further refine FSIE regime
Hong Kong holds ceremony for first batch of OASES partners
Thailand to bring foreign-source income within scope of personal income tax
Hong Kong issues consultation on proposed patent box tax incentive
MIDDLE EAST
Saudi issues amendments to income tax and zakat regulations
Unified GCC tourist visa approved: What we know about the Schengen-style scheme
Dubai launches new online platform to attract and support digital-focused start-ups
UAE: Sheikh Mohammed announces new end-of-service benefits system for employees
RCBI HIGHLIGHT
European Low Tax, Flat Rate and Remittance Based Tax Programmes
In recent years we’ve seen a marked increase in the number of individuals and families who wish to permanently move to a new country, in search of a more comfortable living and working environment, better healthcare, educational and business opportunities as well as enhanced tax efficiency.
PORTUGAL BLOG
Operation Free Bar by Alastair Leithead
In my experience it’s never good turn down the offer of a free bar, as it’s always fun and it usually leads to new friendships. The lengths people will go for a free bar do differ, but for us it was two return trips from the southwestern Alentejo to Porto and involved a lot of help from our friends – old and new.
SOVEREIGN STORIES
Anas Al Adawi, Bahrain
We travel to the Gulf today and the island kingdom of Bahrain where we meet the subject of today’s Sovereign Story. Anas Al Adawi (42) is the Sales Director in the Bahrain office. He is also responsible for managing Sovereign’s separate business hub that opened its doors in January 2023. A Syrian national, Anas’ story is an absorbing one.
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
