whether i am non-domicile or not?

[everfor007]

In 2008 end came to uk for job and 2015 got a British citizenship through naturalization. Previously i am indian citizen born and bought over there and still my parents and sibling living there and i am holding ancestry property which generates little bit rental income and previous saving deposits kept over there.

Whether i am UK non-domiciled or not? Can i declare in SA returns as domicile outside country ? After declaring this, do i need to fill foreign income detail or not required?

[maths]

Domicile is a complex concept.

You appear to possess a. non-UK (Ie Indian) domicile off origin.

The issue is whether you have acquired a domicile of choice in the UK; you clearly reside in the UK. The question then becomes as to what is your intention for the future. This will dictate whether or not you have acquired a UK domicile of choice or not.

The concept of deemed domicile is also relevant for tax purposes. You will be such for income tax and capital gains tax once you have resided in the UK for 15 out of the 20 tax years immediately preceding the relevant tax year.Thus in the tax year 2023/24 you will be deemed domiciled for income and capital gains taxes. It may even be 2022/23 depending upon the precise tax year of your first tax year of residence.

[Taxedminds]

It sounds as though there’s a good possibility that you are non-domiciled in the UK. You should ask yourself: ‘is it my intention to remain in the UK permanently?' If not, and this is evidenced by you still having strong ties to India (which it sounds as though you do) then you likely still retain your Indian domicile of origin and have not established a domicile of choice in the UK.

As user maths says, you will become deemed domiciled in either 2022/23 or 2023/24, depending on when in 2008 you arrived in the UK.

For now, your question is how do you go about completing your tax return if you are not domiciled in the UK. You might find it useful to have a look at https://taxresidenceguide.co.uk/tax-advantages-for-non-domiciled-individuals/ to get an understanding of what you need to do. Essentially, if your Indian income is less than £2,000 in the tax year, and you have not remitted it (i.e have not brought it to the UK), then the remittance basis will apply automatically. You still need to indicate this on your tax return using these pages as part of your tax return: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/872779/SA109_English_Form.pdf , making sure to put an X in box 29. Otherwise, if it is more than £2,000 in the tax year, you will need to make a claim for the remittance basis (put an X in box 28) on your tax return. Doing this means that you’ll lose the tax free personal allowance (£12,500). Therefore in this case you will need to evaluate whether it is worth it (i.e. are you better off reporting the Indian income and keeping the personal allowance, or not reporting the Indian income by claiming the remittance basis and thereby losing the personal allowance. Either way, you don’t have to report your Indian income on the foreign pages of the tax return if you are using/claiming the remittance basis.

[Lambs]

T,

Thank you for your contribution.

May we please clarify:

A UK Self Assessment tax return is not necessary for those who are non-domiciled / in receipt of less than £2,000 overseas income annually, (which has also not been remitted to the UK)? I think one may be required for all sorts of other reasons, but overseas income of less than £2,000 is not one of them.

A person who is in receipt of under £2,000 of overseas income that has not been remitted to the UK will NOT lose their UK tax-free Personal Allowance - it is only when claiming remittance basis AND overseas income exceeds £2,000 that the UK Personal Allowance is potentially forfeit?

With regards,

Lambs

[maths]

There is no need for a claim to be lodged for remittance basis treatment where unremitted foreign income and gains (ie foreign income and capital gains arising in a tax year less the amount of such income/gains which are remitted to the UK in that tax year) are less than £2,000.

In addition, in such circumstances there is no loss of personal allowance (or CGT annual exempt amount).

Thus, for example if foreign income arose of say £15,000 and if say £13,100 is remitted leaving £1,900 outside the UK unremitted then remittance treatment may apply to the £1,900 without claim.