Changing from non dom to domiciled

[thegeographer]

Hi

I'm non British born and filled in my self assessment for the last financial year (2015/16) claiming the remittance basis as a non domiciled individual for less than 2000 pounds of foreign income.

This year, due to a change in intention/more certainty over my stay in the UK, I wish to have myself treated as domiciled. I've never filled out a form or anything justifying my non-domicile in the UK, so it has purely been on the basis of my intention.

A few questions:

1) is HMRC likely to question the change in domicile from one year to another?

2) could they retrospectively argue that I need to change my status for last year as well? If so, how would that work?

I note that my non UK income is very small - less than £50 per year so I am less concerned about the tax liability and more concerned about doing the self assessment correctly and avoiding any troubles with HMRC

[bd6759]

Just stop claiming to be non-domicled. HMRC are not going to argue over such a small amount of income. Domicile enquiries are expensive.

[AGoodman]

You don't need to change your domicile status (it might be useful in future), just disapply the remittance basis.

If you are filing a return then you can elect for the automatic remittance basis not to apply (s.809(1B) ITA 2007) and include the income.

"(1B) Condition B is that the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year.]"

Or remit the income during the year so that the remittance basis doesn't apply.