Considered revelations

Sharon McKie and Simon McKie examine disclosure in self-assessment returns in the light of the increasing number and intensity of HMRC’s enquiries into matters of residence and domicile

The importance of residence and domicile

Most taxing jurisdictions determine the extent to which they subject a person to tax by reference to short- and long-term connecting factors. 

In the UK tax system, these factors are respectively residence and domicile. Both, even after the enactment of the Statutory Residence Test in the Finance Act (FA) 2013, are concepts of the upmost complexity and imprecision.

Determining residence and domicile requires detailed historical enquiry

Determining domicile often requires a detailed historical enquiry to acquire evidence proving the intentions of the taxpayer concerned and, often, the intentions of his father and, sometimes, of his mother and ancestors at multiple times in the past.