In addition, individuals returning to the UK may also be deemed to have a UK domicile from 6th April 2017 or the date of return if after this date, provided they were born in the UK with a UK domicile of origin. 6 years of non-residence will subsequently be required in order to "reset the clock" for the 15 year deemed domicile rule.
All UK resident non-domiciled individuals including those becoming deemed domiciled in April 2017 and paying tax on the remittance basis, will have a window of 2 tax years from April 2017 to rearrange their mixed funds held in overseas/offshore bank accounts, where adequate records have been kept and re-base their non-UK assets for capital gains tax at market value as at 6th April 2017. Unfortunately, this is not available to those returning to the UK as deemed domiciled.
Although designed to hit the very wealthy “non-doms” residing in the UK, this in itself may therefore be enough for the average "non-dom" to decide that being assessed on the arising basis is the cheaper option.
It is therefore necessary to prepare two comparative tax calculations at the end of each tax year before deciding how to complete your self-assessment tax return. That is, assuming you are confident that you qualify as being non-domiciled in the first place, bearing in mind this could always be open to challenge by HM Revenue & Customs (HMRC).
Bank accounts will need to be correctly set up to segregate and identify income and gains from capital, bearing in mind capital remittances are not taxable, and accurate records maintained regarding the inward and outward movements within the accounts.
Domicile being a concept of law and used in tax law is a complex subject and also has implications for inheritance tax irrespective of one’s residence status. However, the 15 out of the last 20 year rule will replace the current 17 out of the last 20 year rule, bringing inheritance tax in line with income and capital gains tax, the implications being that - where UK domiciled - this will result in one's estate being liable to inheritance tax on worldwide assets and not just UK-situated assets where non-domiciled.
Has your domicile of origin been replaced with a domicile of choice or domicile of dependence? How does your domicile impact on your UK tax liabilities ? It is recommended that an independent professional opinion on your domicile and a review of the implications for UK tax purposes be obtained to help support your claim should HMRC enquire into your tax return.