IHTM13002 - Domicile: Definition

Domicile is a legal term the purpose of which is to connect an individual to a territory that has a distinct system of law, e.g. England & Wales, Scotland, France. This law (your personal law) will regulate such issues as the validity of wills, marriages and civil partnerships ( IHTM11032) as well as taxpayer’s exposure to IHT.

However, there is no precise or agreed definition. Broadly speaking, under English law you are domiciled in the country in which you have made your permanent home.

Other countries have their own definition of domicile so do not be surprised if the taxpayer seems to have another understanding of the term. This may occur when considering the impact of a double taxation convention or agreement when considering the succession to foreign property. TG can provide advice in such cases.

In general your domicile will be in a country as a whole. However, where there is, for example, a federal system your domicile will relate to the individual state, province or canton, e.g. Texas, Ontario, and Zurich.

So, despite the wording in the Act you can not be domiciled in the UK but in one of England & Wales, Scotland or Northern Ireland. However, you should take references in the Act and this manual to “domiciled in the UK” to mean domicile in some part of the UK. Similarly England is used as shorthand for England & Wales.

Domicile is separate from other connecting factors such as nationality or residence. So, it is possible to be a national of the UK, resident (say) in Spain but domiciled (say) in Jersey. However, nationality and place(s) of residence will be relevant facts to consider when ascertaining your permanent home.

The mechanics of domicile ensure that you have one, and only one, domicile

At birth you are assigned a domicile of origin ( IHTM13021) which is usually dependent upon the domicile of one of your parents

While you are under 16 your current domicile will change with any change in that parent’s domicile (a domicile of dependence ( IHTM13023))

After that you can change your domicile voluntarily by moving to another country permanently (a domicile of choice ( IHTM13022))

This can be replaced with another domicile of choice. However, if you leave a domicile of choice for good but do not decide to live somewhere else permanently, your current domicile reverts to your domicile of origin.