Glossary · UK

What is Non-Domiciled?

Historically, a UK resident whose permanent home (domicile) was treated as overseas, affecting how foreign income and gains were taxed.

Full Definition

Non-domiciled, or non-dom, described a person who was UK tax resident but whose domicile - broadly, their permanent home or country of long-term attachment - was treated as outside the UK. Under the old rules, non-doms could claim the remittance basis, paying UK tax on foreign income and gains only when those funds were brought into the UK, rather than on a worldwide basis. The concept of domicile-based taxation has been abolished and replaced by a residence-based regime, with transitional rules, so anyone affected should take current professional advice and check gov.uk rather than relying on the former remittance-basis approach. UK residents are generally taxed on worldwide income under standard rules: Personal Allowance of GBP 12,570, then basic rate 20%, higher 40% and additional 45%. The topic matters for internationally mobile individuals, as where you are taxed on overseas income, gains and inheritances can differ substantially from someone taxed only on UK sources.