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<big>This site provides comprehensive information about:
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<big>This site is the successor to [https://www.kessler.co.uk James Kessler's]''Taxation of Non-Residents and Foreign Domiciliaries''.  The reforms of the FA 2025, which one might summarise as the abolition of domicile, have required a new title.  But the approach of this work is unaltered.  It seeks to provide as much information as possible about the UK taxation of individuals and trusts, the broad topic known as private client tax.  Discussion includes:
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# Taxation of foreign domiciliaries
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# Income Tax, CGT and IHT on individuals and trusts
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# Taxation of non-residents on UK income and assets
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# The territorial limits of UK tax (now based on residence, situs and source)
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# Taxation of UK residents on foreign income and assets
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# Other topics arising in this context, including tax avoidance, disclosure and compliance
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# Other topics arising in this context, including tax avoidance, and disclosure and compliance
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It is the online version of [https://www.kessler.co.uk/taxation-of-foreign-domiciliaries/ ''Taxation of Non-Residents and Foreign Domiciliaries''] by [https://www.kessler.co.uk James Kessler QC].   
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This is a wide set of subjects, but in taxation, as in life, everything is connected.
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The mammoth task of updating the text is still underway, and discussion of the new law will continue to go online over the course of the year.  In the meantime, the rubric to some chapters will warn readers where the text has not yet been updated.
  
 
<div style="float: left; width: 33%">
 
<div style="float: left; width: 33%">
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[[Update]]
 
[[Update]]
  
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[[Introduction]]
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:[[Introduction]]
  
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''Non-dom policy & avoidance''
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:[[Dedication]]
  
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:1  [[Foreign Domicile: Tax Policy]]
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:'''''<span style="font-size:106%"> Mobile Individuals Policy & Avoidance</span>'''''
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:1  [[Mobile Individuals: Tax Policy]]
  
 
:2  [[Tax Avoidance]]
 
:2  [[Tax Avoidance]]
  
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''Domicile & residence''
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:3  [[Targeted Anti-Avoidance Rules (TAARs)]]
  
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:3  [[Domicile]]
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:'''''<span style="font-size:106%">Residence</span>'''''
  
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:4  [[Deemed Domicile]]
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:4  [[Residence of Individuals]]
  
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:5  [[Residence of Individuals]]
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:5  [[Residence of Trustees]]
  
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:6  [[Residence of Trustees]]
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:6  [[Residence of Companies]]
  
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:7  [[Residence of Companies]]
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:7  [[Treaty-Residence]]
  
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:8  [[Treaty-Residence]]
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:8  [[Split Years]]
  
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:9  [[Split Years: Arrival and Departure]]
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:9  [[Temporary Non-residence]]
  
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:10  [[Temporary Non-residence]]
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:10  [[Exit Taxes]]
  
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:11  [[Exit Taxes]]
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:11  [[UK Arrival or Departure: Tax Checklist]]
  
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:12  [[UK Arrival or Departure: Tax Checklist]]
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:'''''<span style="font-size:106%">Income Tax: Principles</span>'''''
  
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''Income Tax: Principles & remittance basis''
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:12  [[Income and its Categorisation]]
  
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:13  [[Income Categorisation]]  
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:13  [[Source/Territorial Principles]]
  
 
:14  [[Income Recognition: Receive/Entitled/Arise/Paid]]
 
:14  [[Income Recognition: Receive/Entitled/Arise/Paid]]
  
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:15  [[Source/RFI/Territorial Principles]]  
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:'''''<span style="font-size:106%">FIG Relief: TRF & Former Remittance Basis</span>'''''
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:15  [[FIG Relief & Overseas Workday Relief]]
  
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:16  [[The Remittance Basis]]
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:16  [[Temporary Repatriation Facility]]
  
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:17  [[The Meaning of Remittance]]
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:17  [[The Remittance Basis]]
  
 
:18  [[Remittance Reliefs]]
 
:18  [[Remittance Reliefs]]
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:19  [[Mixed Funds]]
 
:19  [[Mixed Funds]]
  
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''Income by category''
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:'''''<span style="font-size:106%">Income by Category</span>'''''
  
 
:20  [[Trading Income]]
 
:20  [[Trading Income]]
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:29  [[Dividend Income]]
 
:29  [[Dividend Income]]
  
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:30  [[Annual Payments]]
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:30  [[Corporation Tax on Company Distributions]]
  
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:31 [[Intellectual Property Income]]
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:31 [[Annual Payments]]
  
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:32  [[Misc Sweep-Up Income]]
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:32  [[Intellectual Property Income]]
  
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:33  [[Employment Income]]
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:33  [[Misc Sweep-Up Income]]
  
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:34  [[Travel Expenses: Employment Income]]
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:'''''<span style="font-size:106%">Employment Income</span>'''''
  
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:35 [[PAYE]]
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:34 [[Employment Income]]
  
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:36 [[Employment Income: DT Relief]]
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:35 [[Travel Expenses: Employment Income]]
  
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:37 [[Pension and Annuity Income]]
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:36 [[PAYE]]
  
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''IT: General
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:37  [[Disguised Remuneration/Trading Income]]
  
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:38  [[Discretionary Trusts: Income Tax]]
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:38  [[Employment Income: DT Relief]]
  
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:39  [[IIP Trusts: Income Tax]]
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:39  [[Benefit in Kind: Family Home and Chattels]]
  
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:40  [[Rates of Income Tax/CGT]]
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:40  [[Loans from Companies]]
  
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:41  [[Personal Allowances]]
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:'''''<span style="font-size:106%">IT: General</span>'''''
  
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:42 [[Non-Resident Income Tax Relief]]
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:41 [[Discretionary Trusts: Income Tax]]
  
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:43 [[National Insurance Contributions]]
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:42 [[IIP Trusts: Income Tax]]
  
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''IT avoidance codes''
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:43  [[Rates of Income Tax/CGT]]
  
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:44  [[Settlor-interested Trust Code]]
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:44  [[Personal Allowances]]
  
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:45  [[Transfer of Assets Abroad: Introduction]]
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:45  [[Non-Resident Income Tax Relief]]
  
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:46  [[Transfer of Assets Abroad: Transferors]]
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:46  [[National Insurance Contributions]]
  
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:47  [[Transfer of Assets Abroad: Benefits]]
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:'''''<span style="font-size:106%">IT Avoidance Codes</span>'''''
  
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:48 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
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:47 [[Settlor-interested Trust Code]]
  
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:49 [[Transfer of Assets Abroad: Motive Defence]]
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:48 [[Transfer of Assets Abroad: Introduction]]
  
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:50 [[Profit Fragmentation]]
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:49 [[Transfer of Assets Abroad: Transferors]]
  
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:51 [[Transfer of Income Streams]]
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:50 [[Transfer of Assets Abroad: Benefits]]
  
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:52 [[Transactions in Securities]]
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:51 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
  
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''Capital Gains Tax''
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:52  [[Transfer of Assets Abroad: Motive Defence]]
  
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:53  [[Chargeable Gains]]
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:53  [[Profit Fragmentation]]
  
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:54  [[UK Property Held by Non-Residents]]
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:54  [[Transfer of Income Streams]]
  
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:55  [[Residential Property: CGT]]
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:55  [[Transactions in Securities]]
  
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:56  [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
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:'''''<span style="font-size:106%">Capital Gains Tax</span>'''''
  
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:57 [[Capital Payments from Non-Resident Trusts: s.87]]
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:56 [[Chargeable Gains]]
  
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:58 [[Borrowing by Non-Resident Trust: Sch 4B]]
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:57 [[UK Property Held by Non-Residents]]
  
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:59 [[Sub-Funds]]
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:58 [[Reorganisations]]
  
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:60 [[Gains of Non-Resident Companies]]
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:59 [[Residential Property: CGT]]
  
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:61 [[Capital Losses]]
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:60 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
  
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''Funds''
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:61  [[Capital Payments from Non-Resident Trusts: s.87 Code]]
  
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:62  [[Life Policies and Contracts]]
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:62  [[Borrowing by Non-Resident Trust: Sch 4B]]
  
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:63  [[Offshore Funds: Definitions]]
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:63  [[Sub-Funds]]
  
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:64  [[Offshore Income Gains]]
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:64  [[Gains of Non-Resident Companies]]
  
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:65  [[Income from Offshore Funds]]
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:65  [[Capital Losses]]
  
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:66  [[Unit Trusts]]
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:'''''<span style="font-size:106%">Funds</span>'''''
  
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:67 [[Intermediated Securities]]
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:66 [[Funds: Terms & Concepts]]
  
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:68 [[Investment Manager Exemptions]]
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:67 [[Offshore Income Gains]]
  
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:69 [[Investment Management Fees & Carried Interest]]
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:68 [[Income from Offshore Funds]]
  
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''Inheritance Tax''
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:69  [[Unit Trusts]]
  
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:70  [[IHT Terms and Concepts]]
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:70  [[Life Policies and Contracts]]
  
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:71  [[Excluded Property: Definition]]
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:71  [[Intermediated Securities]]
  
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:72  [[Excluded Property Exemptions]]
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:'''''<span style="font-size:106%">Investment Management</span>'''''
  
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:73 [[Wills and IOVs]]
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:72 [[Investment Manager Exemptions]]
  
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:74 [[Reservation of Benefit]]
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:73 [[Carried Interest/Investment Management Fees: Introduction]]
  
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:75 [[Inter-Trust Transfers: IHT]]
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:74 [[Carried Interest]]
  
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:76 [[IHT Deduction for Debts]]
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:75 [[Investment Management Fees]]
  
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:77  [[IHT Close-Company Code]]
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:'''''<span style="font-size:106%">Inheritance Tax</span>'''''
  
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:78 [[IHT Residential Property Code]]
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:76 [[IHT Terms and Concepts]]
  
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:79 [[Family Home and Chattels: Benefit in Kind Charges]]
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:77 [[Excluded Property: Definition]]
  
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:80 [[Pre-Owned Assets]]
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:78 [[Excluded Property Exemptions]]
  
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:81 [[Loans from Non-Resident Companies]]
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:79 [[Wills and IOVs]]
  
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''Entities''
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:80  [[Reservation of Benefit]]
  
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:82 [[Partnerships]]
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:81 [[Inter-Trust Transfers: IHT]]
  
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:83 [[Partnership Income: Attribution]]
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:82 [[IHT Deduction for Debts]]
  
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:84 [[Estates of Deceased Persons: CGT]]
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:83 [[IHT Close-Company Code]]
  
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:85 [[Estates of Deceased Persons: Income Tax]]
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:84 [[IHT Residential-Property Code]]
  
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:86 [[Foreign Entities]]
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:85 [[Pre-Owned Assets]]
  
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:87  [[Hybrid Entities]]
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:'''''<span style="font-size:106%">Partnerships</span>'''''
  
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''Concepts & topics affecting more than one tax''
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:86  [[Partnerships]]
  
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:88 [[Protected Trusts]]
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:87 [[Partnership Income: Allocation]]
  
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:89 [[Non-Dom/Non-Resident Spouse]]
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:88 [[Salaried Members Code]]
  
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:90 [[Joint Accounts]]
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:89 [[Partnerships CGT]]
  
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:91  [[Foreign Currency Issues]]
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:'''''<span style="font-size:106%">Entities</span>'''''
  
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:92 [[Unremittable Assets]]
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:90 [[Settlement, Bare Trust, and Associated Terminology]]
  
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:93 [[ATED and SDLT]]
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:91 [[Estates of Deceased Persons: CGT]]
  
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:94 [[Who is the Settlor?]]
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:92 [[Estates of Deceased Persons: Income Tax]]
  
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:95 [[Multiple Settlors]]
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:93 [[Foreign Entities]]
  
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:96 [[Statutory Tax Indemnities]]
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:94 [[Hybrid Entities]]
  
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:97  [[Situs of Assets for IHT]]
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:'''''<span style="font-size:106%">Pensions & Employment Benefit Trusts</span>'''''
  
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:98 [[Situs of Assets for CGT]]
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:95 [[Pension and Annuity Income]]
  
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:99 [[Control Connected Close and Related Expressions]]
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:96 [[Employer-Financed Retirement Benefits Scheme]]
  
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:100 [[Participation and % interest tests]]
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:97  [[Pension IHT]]
  
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:101 [[Permanent Establishment and Branch/Agency]]
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:'''''<span style="font-size:106%">Topics affecting more than one tax</span>'''''
  
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:102 [[Post-Brexit EU Law]]
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:98 [[Protected Trusts]]
  
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:103 [[Double Taxation Arrangements: Introduction]]
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:99 [[Non-Resident Spouse]]
  
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:104  [[DTA Anti-abuse Rules]]
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:100 [[Joint Accounts]]
  
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:105  [[Limitation on Benefits]]
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:101 [[Foreign Currency Issues]]
  
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:106  [[Credit for Foreign Tax]]
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:102 [[Cryptoassets]]
  
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:107  [[Non-discrimination]]
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:103 [[Unremittable Assets]]
  
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''Double Taxation Agreements: IHT
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:104 [[ATED and SDLT]]
  
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:108  [[IHT Double Taxation Treaties: Introduction]]
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:105 [[Who is the Settlor?]]
  
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:109  [[IHT DTAs: India, Pakistan, Italy, France]]
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:106 [[Multiple Settlors]]
  
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:110  [[IHT DTA: Netherlands]]
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:107 [[Statutory Tax Indemnities]]
  
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:111 [[IHT DTA: South Africa]]
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:108 [[Situs of Assets for IHT]]
  
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:112 [[IHT DTA: Switzerland]]
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:109 [[Situs of Assets for CGT]]
  
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:113  [[IHT DTA: USA]]
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:110 [[Control Connected Close and Related Expressions]]
  
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:114  [[Credit for Foreign IHT]]
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:111 [[Participation, % Investment & Material Interest Tests]]
  
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''Administration''
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:112 [[Permanent Establishment and Branch/Agency]]
  
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:115 [[Reporting and Compliance]]
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:'''''<span style="font-size:106%">Double Taxation Agreements: IT/CGT</span>'''''
  
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:116 [[Tax Return Filing Position]]
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:113 [[Double Taxation Arrangements: Introduction]]
  
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:117 [[Claims]]
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:114 [[DTA Anti-abuse Rules]]
  
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:118 [[Collection of Tax from UK Representatives]]
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:115 [[Third Party Relief/Savings Clause]]
  
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:119 [[Reporting and Compliance: IHT]]
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:116 [[Limitation on Benefits]]
  
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:120 [[Penalties]]
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:117 [[Credit for Foreign Tax]]
  
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:121 [[Common Reporting Standard]]
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:118 [[Non-discrimination]]
  
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:122 [[Trust Registration]]
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:119 [[Mutual Agreement Procedure]]
  
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:123 [[Reporting Offshore Trusts]]
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:'''''<span style="font-size:106%">Double Taxation Agreements: IHT</span>'''''
  
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:124 [[International Movement of Capital: Reports]]
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:120 [[IHT Double Taxation Treaties: Introduction]]
  
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:125 [[Money Laundering]]
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:121 [[IHT DTAs: India, Pakistan, Italy, France]]
  
 +
:122 [[IHT DTA: South Africa]]
  
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''Appendices: Words & Concepts''
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:123 [[IHT DTA: USA]]
  
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:[[Appendix 1 Words of Dispute]]
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:124 [[IHT DTA: Netherlands]]
  
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:[[Appendix 2 Common Legal Expressions]]  
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:125 [[IHT DTA: Switzerland]]
  
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:[[Appendix 3 Family Terminology]]  
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:126 [[Credit for Foreign IHT]]
  
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:[[Appendix 4 Consideration/Arm's Length/Full Value]]
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:'''''<span style="font-size:106%">Administration</span>'''''
  
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:[[Appendix 5 Commercial/View to Profit]]
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:127 [[Reporting and Compliance]]
  
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:[[Appendix 6 What Do We Mean by "Real"]]
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:128 [[Tax Return Filing Position]]
  
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:[[Appendix 7 Deeming Provisions]]
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:129 [[Claims]]
  
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''Special taxpayers''
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:130 [[Collection of IT/CGT from UK Representatives]]
  
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:[[Appendix 8 Parliamentarians]]
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:131 [[Reporting and Compliance: IHT]]
  
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:[[Appendix 9 Visiting Forces]]
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:132 [[Penalties]]
  
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:[[Appendix 10 Students and Teachers]]
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:133 [[Failure to Prevent Tax Evasion]]
  
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''Tax reform''
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:134 [[Reporting Offshore Trusts]]
  
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:[[Appendix 11 How to Improve Residence and Domicile Taxation]]
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:135 [[International Movement of Capital: Reports]]
  
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:[[Appendix 13 Reform of Offshore Anti-avoidance Rules]]
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:'''''<span style="font-size:106%">CRS & Money Laundering</span>'''''
  
 +
:136 [[Common Reporting Standard]]
  
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:[[Appendix 6 Associated Operations: IHT]]
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:137 [[Trust Registration (TRS)]]
  
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:138 [[Customer Due Diligence]]
  
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:139 [[Money Laundering: Criminal Property]]
  
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:[[Appendix 8 The Territorial Principle]]
 
  
  
 +
:'''<big>Appendices</big>'''
  
 +
:'''''<span style="font-size:106%">Words & Concepts</span>'''''
  
 +
:[[Appendix 1 Words of Dispute]]
  
 +
:[[Appendix 2 Common Legal Expressions]]
  
 +
:[[Appendix 3 Family Terminology]]
  
 +
:[[Appendix 4 Share/Security Terminology]]
 +
 
 +
:[[Appendix 5 Consideration, Arm's Length, Full Value]]
  
 +
:[[Appendix 6 Commercial/View to Profit]]
  
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:[[Appendix 7 Beneficial Ownership/Entitlement]]
  
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: [[Appendix 8 Domicile]]
  
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:'''''<span style="font-size:106%">Statutory Construction</span>'''''
  
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:[[Appendix 9 Purpose in Tax Statutes]]
  
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:[[Appendix 15 The Wisdom of Parliament]]
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:[[Appendix 10 Substance and Reality]]
  
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:[[Appendix 11 Deeming Provisions]]
  
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:'''''<span style="font-size:106%">Special Taxpayers</span>'''''
  
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:[[Appendix 12 Parliamentarians]]
  
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:[[Appendix 13 Visiting Forces]]
  
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:[[Appendix 14 Diplomats]]
  
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</div>
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:[[Appendix 15 Sovereign Immunity]]
  
 +
:[[Appendix 16 Students and Teachers]]
  
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<big>'''2021/22 edition'''</big>
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:[[Appendix 17 Continental Shelf]]
  
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This site is in the process of being updated with the text of the 2021/22 edition of ''Taxation of Non-residents and Foreign Domiciliaries'' A paper version of the 2021/22 edition will be available in June.
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:'''''<span style="font-size:106%">Tax Reform</span>'''''
  
−
To access TFD online, you will need an online licence. To obtain this, go to  
+
:[[Appendix 18 How to Improve Private Client Taxation]]
−
[https://www.khpplc.co.uk/ the publishers website] or email [mailto:aw.khpplc@khpplc.co.uk?Subject=TFD%20online aw.khpplc@khpplc.co.uk]
+
  
−
Licences for the 2020/21 edition will cease to be valid on 6th April.
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:[[Appendix 19 Reform of Offshore Anti-Avoidance Law]]
  
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If you are an academic or other non-tax practitioner who wants access for research purposes, [mailto:kessler@kessler.co.uk?Subject=TFD%20online contact James Kessler]
+
:[[Appendix 20 Citizenship-based Taxation]]
 +
 
 +
:[[Appendix 21 The Wisdom of Parliament]]
 +
 
 +
 
 +
 
 +
</div>
 +
 
 +
 
 +
<big>'''2025/26 edition'''</big>
 +
 
 +
The 2025/26 edition of ''Kessler on Private Client Taxation'' is available online and will be published in paper form in July.  The online form is the better choice as it is updated during the year.
 +
 
 +
To access PCT online, you will need an online licence. To obtain this, go to
 +
[https://www.khpplc.co.uk/ the publishers website] or email [mailto:aw.khpplc@khpplc.co.uk?Subject=TFD%20online aw.khpplc@khpplc.co.uk] Licences for previous editions are not valid for the current edition.
 +
 
 +
If you are an academic, student or other non-tax practitioner who wants access for research purposes, [mailto:jkessler@15oldsquare.co.uk?Subject=TFD%20online contact James Kessler]
  
 
<big>'''How to login'''</big>
 
<big>'''How to login'''</big>
  
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Most of this site requires you [[Special:Userlogin|to login]].  To obtain a login licence:
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Most of this site requires you [[Special:Userlogin|to login]].  You may purchase a single or multiple user licence: To obtain these [mailto:mv.khpplc@khpplc.co.uk?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
  
−
*** Every copy of the printed book has a 3 week trial licence (see inside back cover of volume 1)  To order copies of the book [mailto:aw@khpplc.co.uk?Subject=TFD%20enquiry email the publishers] or [http://khpplc.co.uk/ go to the publishers' website].
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Without logging in, you can access:
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** You may purchase a single or multiple user licence:  To obtain these [mailto:mv.khpplc@khpplc.co.uk?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
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*** Without logging in, you can access:
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Chapter 1 [[Mobile Individuals: Tax Policy]]<br/>Chapter 2 [[Tax Avoidance]]
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:Chapter 1 [[Foreign Domicile: Tax Policy]]  
+
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:Chapter 2 [[Tax Avoidance]].
+
  
 
You enter this site once you have registered and [[Special:Userlogin| logged in]] by clicking on the index on the left, or you can search the text.
 
You enter this site once you have registered and [[Special:Userlogin| logged in]] by clicking on the index on the left, or you can search the text.
  
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You need to register for the current edition. Registration for an earlier edition will cease to be valid from 6th April.
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You need to register for the current edition. Registration for an earlier edition is no longer valid.
  
 
<big>'''Comments please'''</big>
 
<big>'''Comments please'''</big>
  
−
Users can also [[contribute to the text]] and if you can add anything, or spot anything that needs to be corrected, please do!  A copy of the next edition of the book will be given to the user who makes the most edits.  User contributions are reviewed by [https://www.taxchambers.com/team/ross-birkbeck/ Ross Birkbeck].   
+
Users can also [[contribute to the text]] and if you can add anything, or spot anything that needs to be corrected, please do!  A copy of the next edition of the book will be given to the user who makes the most edits.  User contributions are reviewed by [https://www.taxchambers.com/team/rebecca-sheldon/ Rebecca Sheldon].   
  
 
<big>'''If you want further advice'''</big>
 
<big>'''If you want further advice'''</big>
  
−
If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler QC or other members of his chambers to advise.  See [[How to instruct James Kessler QC]].
+
If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler KC or other members of his chambers to advise.  See [[How to instruct James Kessler KC]].
  
 
<big>'''Archive editions'''</big>
 
<big>'''Archive editions'''</big>
  
−
There are [[archive editions]] for years since 2003/04.  These will be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.
+
There are [[archive editions]] for years since 2003/04.  These will be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.  
  
 
<big>'''Contact '''</big>
 
<big>'''Contact '''</big>
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If you have technical problems, or problems logging in, [mailto:webmasters@foreigndomiciliaries.co.uk?Subject=TFD%20Technical%20query click here]
 
If you have technical problems, or problems logging in, [mailto:webmasters@foreigndomiciliaries.co.uk?Subject=TFD%20Technical%20query click here]
  
−
To contact James Kessler QC [mailto:kessler@kessler.co.uk?Subject=TFD%20online click here]
+
To contact James Kessler KC [mailto:jkessler@15oldsquare.co.uk?Subject=TFD%20online click here]
  
−
To contact Ross Birkbeck, who reviews online contributions, [mailto:rossbirkbeck@15oldsquare.co.uk?Subject=TFD%20contact%20moderator%20request click here]
+
To contact Rebecca Sheldon, who reviews online contributions, [mailto:RebeccaSheldon@15oldsquare.co.uk?Subject=TFD%20contact%20moderator%20request click here]
  
 
For multiple user licences, or to install on a firm's intranet, [mailto:mv.khpplc@khpplc.co.uk?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
 
For multiple user licences, or to install on a firm's intranet, [mailto:mv.khpplc@khpplc.co.uk?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
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<big>'''Technical notes'''</big>
 
<big>'''Technical notes'''</big>
  
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TFD online is a [http://en.wikipedia.org/wiki/Wiki Wiki] on the lines of [http://en.wikipedia.org Wikipedia], but only registered users can edit the text.
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PCT online is a [http://en.wikipedia.org/wiki/Wiki Wiki] on the lines of [http://en.wikipedia.org Wikipedia], but only registered users can edit the text.
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<big>'''PCT Resource Archive'''</big>
  
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To access the PCT reference material, click here: [[PCT Resource Archive]]

Latest revision as of 09:09, 11 April 2025

This site is the successor to James Kessler'sTaxation of Non-Residents and Foreign Domiciliaries. The reforms of the FA 2025, which one might summarise as the abolition of domicile, have required a new title. But the approach of this work is unaltered. It seeks to provide as much information as possible about the UK taxation of individuals and trusts, the broad topic known as private client tax. Discussion includes:

  1. Income Tax, CGT and IHT on individuals and trusts
  2. The territorial limits of UK tax (now based on residence, situs and source)
  3. Other topics arising in this context, including tax avoidance, disclosure and compliance

This is a wide set of subjects, but in taxation, as in life, everything is connected.

The mammoth task of updating the text is still underway, and discussion of the new law will continue to go online over the course of the year. In the meantime, the rubric to some chapters will warn readers where the text has not yet been updated.

Contents

Update

Introduction
Dedication
Mobile Individuals Policy & Avoidance
1 Mobile Individuals: Tax Policy
2 Tax Avoidance
3 Targeted Anti-Avoidance Rules (TAARs)
Residence
4 Residence of Individuals
5 Residence of Trustees
6 Residence of Companies
7 Treaty-Residence
8 Split Years
9 Temporary Non-residence
10 Exit Taxes
11 UK Arrival or Departure: Tax Checklist
Income Tax: Principles
12 Income and its Categorisation
13 Source/Territorial Principles
14 Income Recognition: Receive/Entitled/Arise/Paid
FIG Relief: TRF & Former Remittance Basis
15 FIG Relief & Overseas Workday Relief
16 Temporary Repatriation Facility
17 The Remittance Basis
18 Remittance Reliefs
19 Mixed Funds
Income by Category
20 Trading Income
21 Trading in Land
22 Performers
23 Property Income
24 Deduction of interest from Property Income
25 Interest Income
26 Exempt Interest of Non-Residents
27 Accrued Income Profits
28 Deeply Discounted Securities
29 Dividend Income
30 Corporation Tax on Company Distributions
31 Annual Payments
32 Intellectual Property Income
33 Misc Sweep-Up Income
Employment Income
34 Employment Income
35 Travel Expenses: Employment Income
36 PAYE
37 Disguised Remuneration/Trading Income
38 Employment Income: DT Relief
39 Benefit in Kind: Family Home and Chattels
40 Loans from Companies
IT: General
41 Discretionary Trusts: Income Tax
42 IIP Trusts: Income Tax
43 Rates of Income Tax/CGT
44 Personal Allowances
45 Non-Resident Income Tax Relief
46 National Insurance Contributions
IT Avoidance Codes
47 Settlor-interested Trust Code
48 Transfer of Assets Abroad: Introduction
49 Transfer of Assets Abroad: Transferors
50 Transfer of Assets Abroad: Benefits
51 Transfer of Assets Abroad: Relief from Overlapping Charges
52 Transfer of Assets Abroad: Motive Defence
53 Profit Fragmentation
54 Transfer of Income Streams
55 Transactions in Securities
Capital Gains Tax
56 Chargeable Gains
57 UK Property Held by Non-Residents
58 Reorganisations
59 Residential Property: CGT
60 Gains of Non-Resident Settlor-Interested Trusts: s.86
61 Capital Payments from Non-Resident Trusts: s.87 Code
62 Borrowing by Non-Resident Trust: Sch 4B
63 Sub-Funds
64 Gains of Non-Resident Companies
65 Capital Losses
Funds
66 Funds: Terms & Concepts
67 Offshore Income Gains
68 Income from Offshore Funds
69 Unit Trusts
70 Life Policies and Contracts
71 Intermediated Securities
Investment Management
72 Investment Manager Exemptions
73 Carried Interest/Investment Management Fees: Introduction
74 Carried Interest
75 Investment Management Fees
Inheritance Tax
76 IHT Terms and Concepts
77 Excluded Property: Definition
78 Excluded Property Exemptions
79 Wills and IOVs
80 Reservation of Benefit
81 Inter-Trust Transfers: IHT
82 IHT Deduction for Debts
83 IHT Close-Company Code
84 IHT Residential-Property Code
85 Pre-Owned Assets
Partnerships
86 Partnerships
87 Partnership Income: Allocation
88 Salaried Members Code
89 Partnerships CGT
Entities
90 Settlement, Bare Trust, and Associated Terminology
91 Estates of Deceased Persons: CGT
92 Estates of Deceased Persons: Income Tax
93 Foreign Entities
94 Hybrid Entities
Pensions & Employment Benefit Trusts
95 Pension and Annuity Income
96 Employer-Financed Retirement Benefits Scheme
97 Pension IHT
Topics affecting more than one tax
98 Protected Trusts
99 Non-Resident Spouse
100 Joint Accounts
101 Foreign Currency Issues
102 Cryptoassets
103 Unremittable Assets
104 ATED and SDLT
105 Who is the Settlor?
106 Multiple Settlors
107 Statutory Tax Indemnities
108 Situs of Assets for IHT
109 Situs of Assets for CGT
110 Control Connected Close and Related Expressions
111 Participation, % Investment & Material Interest Tests
112 Permanent Establishment and Branch/Agency
Double Taxation Agreements: IT/CGT
113 Double Taxation Arrangements: Introduction
114 DTA Anti-abuse Rules
115 Third Party Relief/Savings Clause
116 Limitation on Benefits
117 Credit for Foreign Tax
118 Non-discrimination
119 Mutual Agreement Procedure
Double Taxation Agreements: IHT
120 IHT Double Taxation Treaties: Introduction
121 IHT DTAs: India, Pakistan, Italy, France
122 IHT DTA: South Africa
123 IHT DTA: USA
124 IHT DTA: Netherlands
125 IHT DTA: Switzerland
126 Credit for Foreign IHT
Administration
127 Reporting and Compliance
128 Tax Return Filing Position
129 Claims
130 Collection of IT/CGT from UK Representatives
131 Reporting and Compliance: IHT
132 Penalties
133 Failure to Prevent Tax Evasion
134 Reporting Offshore Trusts
135 International Movement of Capital: Reports
CRS & Money Laundering
136 Common Reporting Standard
137 Trust Registration (TRS)
138 Customer Due Diligence
139 Money Laundering: Criminal Property


Appendices
Words & Concepts
Appendix 1 Words of Dispute
Appendix 2 Common Legal Expressions
Appendix 3 Family Terminology
Appendix 4 Share/Security Terminology
Appendix 5 Consideration, Arm's Length, Full Value
Appendix 6 Commercial/View to Profit
Appendix 7 Beneficial Ownership/Entitlement
Appendix 8 Domicile
Statutory Construction
Appendix 9 Purpose in Tax Statutes
Appendix 10 Substance and Reality
Appendix 11 Deeming Provisions
Special Taxpayers
Appendix 12 Parliamentarians
Appendix 13 Visiting Forces
Appendix 14 Diplomats
Appendix 15 Sovereign Immunity
Appendix 16 Students and Teachers
Appendix 17 Continental Shelf
Tax Reform
Appendix 18 How to Improve Private Client Taxation
Appendix 19 Reform of Offshore Anti-Avoidance Law
Appendix 20 Citizenship-based Taxation
Appendix 21 The Wisdom of Parliament



2025/26 edition

The 2025/26 edition of Kessler on Private Client Taxation is available online and will be published in paper form in July. The online form is the better choice as it is updated during the year.

To access PCT online, you will need an online licence. To obtain this, go to the publishers website or email aw.khpplc@khpplc.co.uk Licences for previous editions are not valid for the current edition.

If you are an academic, student or other non-tax practitioner who wants access for research purposes, contact James Kessler

How to login

Most of this site requires you to login. You may purchase a single or multiple user licence: To obtain these contact the publishers.

Without logging in, you can access:

Chapter 1 Mobile Individuals: Tax Policy
Chapter 2 Tax Avoidance

You enter this site once you have registered and logged in by clicking on the index on the left, or you can search the text.

You need to register for the current edition. Registration for an earlier edition is no longer valid.

Comments please

Users can also contribute to the text and if you can add anything, or spot anything that needs to be corrected, please do! A copy of the next edition of the book will be given to the user who makes the most edits. User contributions are reviewed by Rebecca Sheldon.

If you want further advice

If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler KC or other members of his chambers to advise. See How to instruct James Kessler KC.

Archive editions

There are archive editions for years since 2003/04. These will be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.

Contact

If you have technical problems, or problems logging in, click here

To contact James Kessler KC click here

To contact Rebecca Sheldon, who reviews online contributions, click here

For multiple user licences, or to install on a firm's intranet, contact the publishers.

Technical notes

PCT online is a Wiki on the lines of Wikipedia, but only registered users can edit the text.


PCT Resource Archive

To access the PCT reference material, click here: PCT Resource Archive

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