HMRC have recently published new guidance on domicile (HMRC 6) and change of approach.

HMRC will no longer accept initial non domicile claims on forms DOM 1 or form 86.  Form DOM 1 is being withdrawn completely.

Instead individuals will have to self assess their domicile status as part of their Self Assessment tax return on a year by year basis.  This formally opens up the door for HMRC to query an individual’s domicile status over time rather than being bound by a ruling.

HMRC state “… if you say that you have a non domicile status, then………………. we might want to enquire whether or not that is correct.  By its very nature, this sort of enquiry whether or not correct, will be an in-depth examination of your background, lifestyle and intentions over the course of your lifetime.  Any enquiry of this sort will extend to areas of your life, and that of your family, that you might not ordinarily think are relevant to your tax affairs”.

Where HMRC ruling has not been obtained we will be pleased to review the non domicile status of the individual to enable self assessment in the tax return.

HMRC guidelines also state that any ruling originally given may become less of a useful indicator over time.

Where a ruling has been obtained, it is very important to regularly monitor the domicile status, review the long term intentions and maintain the connections with the country of domicile.