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Sam
Sam, Accountant
Category: Tax
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I am a British citizen, living outside of the UK for the

Resolved Question:

I am a British citizen, living outside of the UK for the last 9 years only visiting no longer than a couple of weeks each year. I have a business in HK and I live in another country receiving dividends.
Can I claim to be non-domiciled? It seems to say so from the gov.uk website but I've read many people claiming it to be very difficult.
Other facts are my father is British, born in England and currently lives in England. I have property in Thailand where I reside now since only recently. I receive more than 2000 GBP income from Hong Kong. I do not intend to return to the UK only for short trips in the future.
Submitted: 11 months ago.
Category: Tax
Expert:  Sam replied 11 months ago.

Hi

Thanks for your question

Domicile is usually determined by you and your fathers birth place birth place or place of death (if one and the same) where this differ it all depends on factors of where you live and your movements within that country, what ties you have to any one or more countries and your intended last resting place

At this time its far to say you are non domiciled in the UK as you receive no income from this country but its not something you claim its a matter of fact based on your circumstance, as HMRC will never allocate this to your present position, as that could all change.

But as you have no UK income arising AND you have been treated as not resident for the last 9 years and you have no money or assets that sit in the UK then you will not be liable to any tax in the UK.

What is it that concerns you regarding this status recognition?

Thanks

Sam

Customer: replied 11 months ago.
Thank you Sam, I'm concerned as actually my Hong Kong business is in the process of being setup - which will take in approx. 100,000 GBP per year from dividends and I want to know if I should or should not pay income tax, preferably not if I can help it.
Customer: replied 11 months ago.
I do not have residency in Thailand, currently using a 5 year elite visa here. Where should I pay my income tax if I'm not liable to pay any in tax in the UK?
Expert:  Sam replied 11 months ago.

Hi

Thanks for your response

So these dividends originate from the UK? And I assume you declare these to HMRC through self assessment for higher rate tax?

Can we establish this first before we then determine where you should pay tax

Thanks

Sam

Customer: replied 11 months ago.
No they originate from outside the UK. They will come through the HK company.
Expert:  Sam replied 11 months ago.

Hi

Then whether you have domiciled status or not you have NO UK tax liability as you are neither resident in the UK nor have any source of income arising in the UK.

You tax obligation will always be the country in which you permanently reside which is Thailand and if they are not able or be prepared to take into play your tax position due to restrictions placed on the visa, then Hong Kong would be the next country to have rights on your tax as your main income originates from this country.

The UK have no obligations at all - unless for some very bizarre reason Hong Kong also die not have the ability to take you within their tax jurisdiction (but I cannot see any reason whay they could not)

So your domicile within the UK has no bearing its the residency position and where the income arises that determines your tax position.

Do let me know if I can assist further, but if you have all that you need then please do rate the level of service I have provided or click accept (much appreciated.

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 11 months ago.
Thank you Sam, I may come back to you with more questions, you've been very helpful.

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