Losing UK domicile status

Many emigrants are looking to lose their UK domicile status as well as their UK residence status. This makes sense as there's little point in remaining within the charge to UK inheritance tax if they can help it, particularly if there are few UK ties and most of their assets are overseas. Actually achieving this is not though straightforward. If this applies to you, you'll need to show that you have residence overseas (and this is different from the income tax/CGT definition of residence) and that you intend to remain there permanently/indefinitely. The problem is that many expats still retain some strong links with the UK. This is particularly the case for two reasons: Firstly, just after they've left the UK to 'keep a foot in the door' in the Uk and ensure they have an easy exit strategy if they don't like the new overseas life. Secondly, for more longer term expats, they like to retain a sense of Britishness, in addition to keeping somewhere to visit family and friends. In these cases losing UK domicile is a little more difficult, but is certainly not impossible. Members can check out out recent article on Losing your domicile in 2007 which looks at the rules that apply for anyone looking to lose UK domicile status in 2007, and summarises the approach of the Revenue and Commissioners.