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12 | Domicile regulations
Domicile and
intestacy rules
applying in the UK
A leading lawyer provides guidance on this
complex area
By Susan Midha, Partner,
Private Client Department, Adams & Remers Solicitors
T
he legal system we’ve grown up custody of children), immigration and in which country do you spend most of your
with is deeply imbedded in our inheritance. time, where do intend to retire to, or to be
psyche and as long as we keep on By and large, the ways in which status can be buried; where is your main centre of activity;
the “right side” of it, we may feel assessed are objective: it would be clear from which “private” law are you most closely
that the law doesn’t affect us. But your birth certificate or passport, for example, associated with?
that could be short-sighted, as law or from your address. But the test for domicile While it is possible to be resident in more
impacts on our daily lives much more than we is subjective. Although it sounds like a legalistic than one country concurrently, it isn’t possible
might think. Everyday we make numerous legal word for residence, it isn’t the same concept. It to have more than one domicile (unless one is
agreements (contracts), usually governed by the is possible to be domiciled in England and “deemed domiciled” - a concept that applies
law of the country where we are at the time. Wales, Scotland or Northern Ireland without only to UK inheritance tax, the tax which
Whether buying a house or a newspaper, taking being resident in the UK. Broadly, if your father applies on death and on gifts).
a job, or drink in a pub or café, the contract was domiciled in the UK when you were born, And although we tend by way of shorthand
may or may not be formal, or in writing. Just you too will be UK domiciled (with a domicile to speak of a UK domicile, a UK domiciliary is,
parking a car and putting money in the meter of origin here) unless (a) you live outside the strictly speaking, someone who is domiciled in
creates an agreement, the consequences of UK and (b) you have made a decision to England and Wales, or Scotland or Northern
which become all too clear when we’re given a acquire a domicile in another country where Ireland and there are some important
parking ticket if we overstay. you are living. differences in those legal systems.
And there are other important areas of our The consequence of being domiciled in the
lives where the law applies, not because of any Domiciliary difficulty UK inc
agreement made, but because of our status, Similarly, you can live in the UK but if you do circle6
lude the following:
You are taxed on your income and capital
commonly based on one or more of not have a domicile of origin here and have not
citizenship, nationality, residence, ordinary adopted a UK domicile of choice, then you will circle6
world wide;
You come under UK rules for the validity of
residence, the nationality of one’s parents or not be UK domiciled. How do you acquire a your marriage (or the registration of a same
grandparents, or, as is the case in the UK, a domicile of choice? Well, the answer may be sex civil partnership), and for the adoption
peculiar concept called domicile. surprising – in the light of the important
The areas most commonly affected by this consequences that it can have - but it’s a circle6
of children;
You are within the jurisdiction of UK courts
hidden or “private” law are tax, family matters question of intention. It’s akin to “home being for questions of divorce and the custody of
(for example, marriage, divorce, adoption and where the heart is”, and is judged on the facts: children;
November 2009 Investment International
www.investmentinternational.com
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