Despite the seismic changes to the non-dom regime announced in the 2024 Budget, Chancellor Jeremy Hunt did not mention “visa” or “migration” at all in the 200-page document.  With the closure of the Tier 1 (Investor) visa route to new applicants and the proposed abolishment of the non-dom regime, it is fair to say that the UK is becoming less attractive to foreign HNW and UHNW individuals.

Domicile vs residence 

According to the policy paper, “The concept of domicile as a relevant connecting factor in the tax system will be replaced by a system based on tax residence.”   Although domicile will still be relevant in determining which jurisdiction will govern certain aspects of an individual's life (e.g. legitimacy, succession and marriage), their residence status will determine their liability to UK income tax, capital gains tax and inheritance tax going forward.

What is “residence”?

Since 2013, the Statutory Residence Test ("SRT") has been in place to determine whether or not an individual is resident in the UK for tax purposes.  However, as discussed in this post, “residence” for UK tax purposes is not the same as “residence” for UK immigration purposes.  With the proposed changes to the non-dom regime in mind, it is therefore crucial to ensure that an individual understands how the UK tax and immigration systems interact and seeks advice at the earliest opportunity.

How can we help?

Burges Salmon's specialists have substantial experience in immigration, tax, trusts, and estate planning for international clients.  If you wish to discuss any of the matters raised in this article, please do get in touch with Suzanna Harvey, Myra Leung or your usual contact within the team.