What is Domicile? UK Definition 2026/27
Quick Answer
Your permanent home country for tax purposes, affecting how overseas income is taxed.
Definition of Domicile
Domicile is your permanent home - the country you consider your long-term home and intend to return to. It's different from residence. Non-UK domiciled individuals may use the remittance basis for foreign income, though this is being reformed. Domicile affects Inheritance Tax treatment of overseas assets.
Domicile — Key Facts for 2026/27
| Domicile of origin | Usually father's domicile at birth |
| Domicile of choice | Can be acquired by settling permanently |
| Deemed domicile | After 15 of last 20 years UK resident |
| IHT implications | Worldwide vs UK assets |
How Domicile Works — Example
- 1UK resident, foreign domicile
- 2UK income: taxed normally
- 3Foreign income: remittance basis available
- 4Only UK income brought to UK is taxed
- 5After 15 years: deemed domiciled
How Domicile Affects Your Tax
Non-dom status offers significant tax planning opportunities for high-net-worth individuals with foreign income and assets. However, reforms have limited benefits, and deemed domicile rules now apply after long UK residence.
Official HMRC Guidance on Domicile
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
HMRC: Non-domiciled residentsFrequently Asked Questions about Domicile
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.