For most UK citizens, the question of what income and gains should be included on their tax return is easily answered because they are both UK domiciled and UK tax resident.

Anyone domiciled and resident in the UK will need to report their worldwide income and capital gains on their tax return. However, what happens if you are either non-UK domiciled (non-dom) but UK resident, or UK domiciled but non-UK resident?

In these circumstances, different rules apply and the last four years have seen considerable change to tax legislation in this area as the Government seeks to expand the scope of what can be taxed within the UK.

There are a significant number of UK citizens who now live abroad, whether temporarily on work contracts or who have permanently relocated. For those leaving the UK who are domiciled in the UK (their permanent home is in the UK) their tax liabilities may be far from straightforward.

This latest Active Practice Update provides guidance on how residence and domicile status can affect the amount of tax that needs to be paid.

If you would like to discuss in more detail any of the issues raised with a member of our team, please call 01772 741200