What is a Non-Dom?

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A non-dom is a UK resident whose permanent home is outside of the UK. Essentially this is an individual who lives in the UK but is not, from a legal perspective, domiciled in it. In many cases this has the effect of obtaining tax advantages in the country where they are residing.

A domicile is usually the country the individual’s parents considered their permanent home when they were born. However it may also be the place overseas where somebody has moved to with no intention of returning.

Somebody can be born, be educated and work in the UK but still hold non-dom status – they can also inherit their non-dom status from their parents.

For tax reasons, the individual has to provide evidence about their background, lifestyle and future intentions, such as where they own property or intend to be buried.

Part of this ‘non-dom tax status’ is that an individual must pay UK tax on UK earnings, but need not pay UK tax on foreign income or gains unless they bring that income back into the UK.