Deemed Domiciled Individuals

At Harris Stewart we are experts in preparing and reporting taxes for deemed domiciled individuals with high net worth. Our services ensure all aspects are aligned in your best interests so you don’t pay any unnecessary taxes, or incur penalties based on inaccuracies.

Who counts as a deemed domicile?
Since the Finance Act 2017 brought in new legislation, any non UK domiciled individual who has been a UK resident for at least 15 of the previous 20 tax years, will be deemed to be a UK domiciled individual for the purposes of Income Tax, Capital Gains Tax, and Inheritance Tax.

When a person becomes UK domiciled, they become taxable on their worldwide income and gains, as well as being subject to Inheritance Tax on their worldwide assets.

Our deemed domiciled services include:
● Cleansing mixed funds/capital
● Rebasing non-UK assets
● Reporting to avoid penalties
● Organising assets to reduce taxes paid

Opportunities for saving tax
Anyone who is a deemed UK domiciled individual on 6 April 2017 has the opportunity to ‘rebase’ their non-UK assets at the market value, as it stood on 6 April 2017. Should a person be eligible, when non-UK assets are sold, the original cost may be substituted for the market value on 6 April 2017.

For this option to be available, the individual must have previously claimed the remittance basis and have paid the remittance basis charge, in respect of any year prior to 6 April 2017.

Under these provisions, if UK deemed domiciled individuals have any non-UK assets for which they could make gains from selling, it may be worth considering making a remittance basis claim for 2016/17 or, to the extent that you are within the legislative time limits, an earlier year. Our team can review every aspect of your position under the legislation to create the best possible solution for your finances.

Cleansing mixed funds deadline
Non domiciled individuals (even if they are now deemed to be UK domiciled) may also be able to cleanse any mixed funds, which is beneficial if ‘relevant foreign income or gains’ are mixed with a source of clean capital. Our advisors can organise this process, and it’s important to note the deadline to cleanse such funds is 5 April 2019. Should this apply, please get in touch as soon as possible.

Our practitioners can help
If you are a deemed domiciled individual and desire access to clean capital so it can be moved to the UK, or wish to rebase your non-UK assets, please <a/ href=”/contact-us/”>contact us on 01403 216171 or email with your details.