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<span style="color:red">''<big>'''NOTE FOR ALL USERS:''' 
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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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# Income Tax, CGT and IHT on individuals and trusts
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# The territorial limits of UK tax (now based on residence, situs and source)
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# Other topics arising in this context, including tax avoidance, disclosure and compliance
  
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<u>'''THIS SITE IS CURRENTLY IN THE PROCESS OF BEING UPDATED</u> TO THE NEW 2022-23 EDITION OF TAXATION OF NON-RESIDENTS AND FOREIGN DOMICILIARIES'''</big> ''</span>
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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.  
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<big>This site provides comprehensive information about:
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# Taxation of foreign domiciliaries
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# Taxation of non-residents on UK income and assets
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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, 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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<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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:[[Dedication]]
  
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'''Non-dom Policy & Avoidance'''
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:'''''<span style="font-size:106%"> Mobile Individuals Policy & Avoidance</span>'''''
  
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:1  [[Foreign Domicile: Tax Policy]]
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:1  [[Mobile Individuals: Tax Policy]]
  
 
:2  [[Tax Avoidance]]
 
:2  [[Tax Avoidance]]
  
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:3 [[Targeted Anti-Avoidance Rules (TAARs)]]
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:3   [[Targeted Anti-Avoidance Rules (TAARs)]]
  
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'''Domicile & Residence'''
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:'''''<span style="font-size:106%">Residence</span>'''''
  
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:4  [[Domicile]]  
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:4  [[Residence of Individuals]]
  
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:5  [[Deemed Domicile]]
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:5  [[Residence of Trustees]]
  
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:6  [[Residence of Individuals]]
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:6  [[Residence of Companies]]
  
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:7  [[Residence of Trustees]]
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:7  [[Treaty-Residence]]
  
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:7   [[Residence of Companies]]
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:8   [[Split Years]]
  
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:9  [[Treaty-Residence]]
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:9  [[Temporary Non-residence]]
  
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:10   [[Split Years: Arrival and Departure]]
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:10 [[Exit Taxes]]
  
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:11  [[Temporary Non-residence]]
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:11  [[UK Arrival or Departure: Tax Checklist]]
  
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:12  [[Exit Taxes]]
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:'''''<span style="font-size:106%">Income Tax: Principles</span>'''''
  
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:13 [[UK Arrival or Departure: Tax Checklist]]
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:12 [[Income and its Categorisation]]
  
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'''Income Tax: Principles & Remittance Basis'''
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:13  [[Source/Territorial Principles]]
  
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:14  [[Income Categorisation]]  
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:14  [[Income Recognition: Receive/Entitled/Arise/Paid]]
  
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:15  [[Income Recognition: Receive/Entitled/Arise/Paid]]
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:'''''<span style="font-size:106%">FIG Relief: TRF & Former Remittance Basis</span>'''''
  
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:16  [[Source/RFI/Territorial Principles]]  
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:15  [[FIG Relief & Overseas Workday Relief]]
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 +
:16  [[Temporary Repatriation Facility]]
  
 
:17  [[The Remittance Basis]]
 
:17  [[The Remittance Basis]]
  
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:18  [[The Meaning of Remittance]]
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:18  [[Remittance Reliefs]]
  
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:19  [[Remittance Reliefs]]
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:19  [[Mixed Funds]]
  
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:20  [[Mixed Funds]]
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:'''''<span style="font-size:106%">Income by Category</span>'''''
  
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'''Income by Category'''
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:20  [[Trading Income]]
  
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:21  [[Trading Income]]
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:21  [[Trading in Land]]
  
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:22  [[Trading in Land]]
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:22  [[Performers]]
  
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:23  [[Performers]]
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:23  [[Property Income]]
  
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:24  [[Property Income]]
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:24  [[Deduction of interest from Property Income]]
  
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:25  [[Deduction of interest from Property Income]]
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:25  [[Interest Income]]
  
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:26  [[Interest Income]]
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:26  [[Exempt Interest of Non-Residents]]
  
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:27  [[Exempt Interest of Non-Residents]]
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:27  [[Accrued Income Profits]]
  
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:28  [[Accrued Income Profits]]
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:28  [[Deeply Discounted Securities]]
  
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:29  [[Deeply Discounted Securities]]
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:29  [[Dividend Income]]
  
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:30  [[Dividend Income]]
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:30  [[Corporation Tax on Company Distributions]]
  
 
:31  [[Annual Payments]]
 
:31  [[Annual Payments]]
  
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:32 [[Intellectual Property Income]]
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:32 [[Intellectual Property Income]]
  
 
:33  [[Misc Sweep-Up Income]]
 
:33  [[Misc Sweep-Up Income]]
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 +
:'''''<span style="font-size:106%">Employment Income</span>'''''
  
 
:34  [[Employment Income]]
 
:34  [[Employment Income]]
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:36  [[PAYE]]
 
:36  [[PAYE]]
  
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:37  [[Employment Income: DT Relief]]
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:37  [[Disguised Remuneration/Trading Income]]
  
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:38  [[Pension and Annuity Income]]
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:38  [[Employment Income: DT Relief]]
  
 
:39  [[Benefit in Kind: Family Home and Chattels]]
 
:39  [[Benefit in Kind: Family Home and Chattels]]
  
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:40
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:40 [[Loans from Companies]]
  
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''IT: General
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:'''''<span style="font-size:106%">IT: General</span>'''''
  
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:38 [[Discretionary Trusts: Income Tax]]
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:41 [[Discretionary Trusts: Income Tax]]
  
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:39 [[IIP Trusts: Income Tax]]
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:42 [[IIP Trusts: Income Tax]]
  
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:40 [[Rates of Income Tax/CGT]]
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:43 [[Rates of Income Tax/CGT]]
  
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:41 [[Personal Allowances]]
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:44 [[Personal Allowances]]
  
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:42 [[Non-Residents Income Tax Relief]]
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:45 [[Non-Resident Income Tax Relief]]
  
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:43 [[National Insurance Contributions]]
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:46 [[National Insurance Contributions]]
  
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''IT avoidance codes''
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:'''''<span style="font-size:106%">IT Avoidance Codes</span>'''''
  
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:44 [[Settlor-interested Trust Code]]
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:47 [[Settlor-interested Trust Code]]
  
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:45 [[Transfer of Assets Abroad: Introduction]]
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:48 [[Transfer of Assets Abroad: Introduction]]
  
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:46 [[Transfer of Assets Abroad: Transferors]]
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:49 [[Transfer of Assets Abroad: Transferors]]
  
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:47 [[Transfer of Assets Abroad: Benefits]]
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:50 [[Transfer of Assets Abroad: Benefits]]
  
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:48 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
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:51 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
  
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:49 [[Transfer of Assets Abroad: Motive Defence]]
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:52 [[Transfer of Assets Abroad: Motive Defence]]
  
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:50 [[Profit Fragmentation]]
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:53 [[Profit Fragmentation]]
  
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:51 [[Transfer of Income Streams]]
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:54 [[Transfer of Income Streams]]
  
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:52 [[Transactions in Securities]]
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:55 [[Transactions in Securities]]
  
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''Capital Gains Tax''
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:'''''<span style="font-size:106%">Capital Gains Tax</span>'''''
  
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:53 [[Chargeable Gains]]
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:56 [[Chargeable Gains]]
  
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:54 [[UK Property Held by Non-Residents]]
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:57 [[UK Property Held by Non-Residents]]
  
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:55 [[Residential Property: CGT]]
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:58 [[Reorganisations]]
  
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:56 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
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:59 [[Residential Property: CGT]]
  
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:57 [[Capital Payments from Non-Resident Trusts: s.87]]
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:60 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
  
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:58 [[Borrowing by Non-Resident Trust: Sch 4B]]
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:61 [[Capital Payments from Non-Resident Trusts: s.87 Code]]
  
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:59 [[Sub-Funds]]
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:62 [[Borrowing by Non-Resident Trust: Sch 4B]]
  
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:60 [[Gains of Non-Resident Companies]]
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:63 [[Sub-Funds]]
  
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:61 [[Capital Losses]]
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:64 [[Gains of Non-Resident Companies]]
  
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''Funds''
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:65  [[Capital Losses]]
  
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:62  [[Life Policies and Contracts]]
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:'''''<span style="font-size:106%">Funds</span>'''''
  
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:63 [[Offshore Funds: Definitions]]
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:66 [[Funds: Terms & Concepts]]
  
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:64 [[Offshore Income Gains]]
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:67 [[Offshore Income Gains]]
  
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:65 [[Income from Offshore Funds]]
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:68 [[Income from Offshore Funds]]
  
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:66 [[Unit Trusts]]
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:69 [[Unit Trusts]]
  
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:67 [[Intermediated Securities]]
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:70 [[Life Policies and Contracts]]
  
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:68 [[Investment Manager Exemptions]]
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:71 [[Intermediated Securities]]
  
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:69  [[Investment Management Fees & Carried Interest]]
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:'''''<span style="font-size:106%">Investment Management</span>'''''
  
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''Inheritance Tax''
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:72  [[Investment Manager Exemptions]]
  
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:70 [[IHT Terms and Concepts]]
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:73 [[Carried Interest/Investment Management Fees: Introduction]]
  
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:71 [[Excluded Property: Definition]]
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:74 [[Carried Interest]]
  
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:72 [[Excluded Property Exemptions]]
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:75 [[Investment Management Fees]]
  
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:73  [[Wills and IOVs]]
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:'''''<span style="font-size:106%">Inheritance Tax</span>'''''
  
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:74 [[Reservation of Benefit]]
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:76 [[IHT Terms and Concepts]]
  
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:75 [[Inter-Trust Transfers: IHT]]
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:77 [[Excluded Property: Definition]]
  
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:76 [[IHT Deduction for Debts]]
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:78 [[Excluded Property Exemptions]]
  
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:77 [[IHT Close-Company Code]]
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:79 [[Wills and IOVs]]
  
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:78 [[IHT Residential Property Code]]
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:80 [[Reservation of Benefit]]
  
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:79 [[Family Home and Chattels: Benefit in Kind Charges]]
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:81 [[Inter-Trust Transfers: IHT]]
  
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:80 [[Pre-Owned Assets]]
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:82 [[IHT Deduction for Debts]]
  
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:81 [[Loans from Non-Resident Companies]]
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:83 [[IHT Close-Company Code]]
  
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:81A [[Pension Schemes and IHT]]
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:84 [[IHT Residential-Property Code]]
  
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''Entities''
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:85  [[Pre-Owned Assets]]
  
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:82  [[Partnerships]]
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:'''''<span style="font-size:106%">Partnerships</span>'''''
  
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:83 [[Partnership Income: Attribution]]
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:86 [[Partnerships]]
  
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:84 [[Estates of Deceased Persons: CGT]]
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:87 [[Partnership Income: Allocation]]
  
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:85 [[Estates of Deceased Persons: Income Tax]]
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:88 [[Salaried Members Code]]
  
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:85A [[Settlement, Bare Trust, and Associated Terminology]]
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:89  [[Partnerships CGT]]
  
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:86  [[Foreign Entities]]
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:'''''<span style="font-size:106%">Entities</span>'''''
  
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:87 [[Hybrid Entities]]
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:90 [[Settlement, Bare Trust, and Associated Terminology]]
  
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''Concepts & topics affecting more than one tax''
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:91  [[Estates of Deceased Persons: CGT]]
  
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:88 [[Protected Trusts]]
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:92 [[Estates of Deceased Persons: Income Tax]]
  
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:89 [[Non-Dom/Non-Resident Spouse]]
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:93 [[Foreign Entities]]
  
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:90 [[Joint Accounts]]
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:94 [[Hybrid Entities]]
  
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:91  [[Foreign Currency Issues]]
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:'''''<span style="font-size:106%">Pensions & Employment Benefit Trusts</span>'''''
  
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:92 [[Unremittable Assets]]
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:95 [[Pension and Annuity Income]]
  
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:93 [[ATED and SDLT]]
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:96 [[Employer-Financed Retirement Benefits Scheme]]
  
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:94 [[Who is the Settlor?]]
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:97 [[Pension IHT]]
  
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:95  [[Multiple Settlors]]
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:'''''<span style="font-size:106%">Topics affecting more than one tax</span>'''''
  
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:96 [[Statutory Tax Indemnities]]
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:98 [[Protected Trusts]]
  
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:97 [[Situs of Assets for IHT]]
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:99 [[Non-Resident Spouse]]
  
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:98  [[Situs of Assets for CGT]]
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:100 [[Joint Accounts]]
  
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:99  [[Control Connected Close and Related Expressions]]
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:101 [[Foreign Currency Issues]]
  
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:100 [[Participation & % Investment Tests]]
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:102 [[Cryptoassets]]
  
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:101 [[Permanent Establishment and Branch/Agency]]
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:103 [[Unremittable Assets]]
  
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:102  [[Post-Brexit EU Law]]
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:104 [[ATED and SDLT]]
  
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:103  [[Double Taxation Arrangements: Introduction]]
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:105 [[Who is the Settlor?]]
  
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:104  [[DTA Anti-abuse Rules]]
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:106 [[Multiple Settlors]]
  
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:105  [[Limitation on Benefits]]
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:107 [[Statutory Tax Indemnities]]
  
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:106  [[Credit for Foreign Tax]]
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:108 [[Situs of Assets for IHT]]
  
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:107  [[Non-discrimination]]
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:109 [[Situs of Assets for CGT]]
  
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''Double Taxation Agreements: IHT
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:110 [[Control Connected Close and Related Expressions]]
  
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:108  [[IHT Double Taxation Treaties: Introduction]]
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:111 [[Participation, % Investment & Material Interest Tests]]
  
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:109  [[IHT DTAs: India, Pakistan, Italy, France]]
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:112 [[Permanent Establishment and Branch/Agency]]
  
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:110  [[IHT DTA: Netherlands]]
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:'''''<span style="font-size:106%">Double Taxation Agreements: IT/CGT</span>'''''
  
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:111 [[IHT DTA: South Africa]]
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:113 [[Double Taxation Arrangements: Introduction]]
  
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:112 [[IHT DTA: Switzerland]]
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:114 [[DTA Anti-abuse Rules]]
  
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:113  [[IHT DTA: USA]]
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:115 [[Third Party Relief/Savings Clause]]
  
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:114  [[Credit for Foreign IHT]]
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:116 [[Limitation on Benefits]]
  
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''Administration''
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:117 [[Credit for Foreign Tax]]
  
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:115 [[Reporting and Compliance]]
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:118 [[Non-discrimination]]
  
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:116 [[Tax Return Filing Position]]
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:119 [[Mutual Agreement Procedure]]
  
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:117 [[Claims]]
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:'''''<span style="font-size:106%">Double Taxation Agreements: IHT</span>'''''
  
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:118 [[Collection of Tax from UK Representatives]]
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:120 [[IHT Double Taxation Treaties: Introduction]]
  
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:119 [[Reporting and Compliance: IHT]]
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:121 [[IHT DTAs: India, Pakistan, Italy, France]]
  
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:120 [[Penalties]]
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:122 [[IHT DTA: South Africa]]
  
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:120A [[Failure to Prevent Tax Evasion]]
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:123 [[IHT DTA: USA]]
  
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:121 [[Common Reporting Standard]]
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:124 [[IHT DTA: Netherlands]]
  
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:122 [[Trust Registration]]
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:125 [[IHT DTA: Switzerland]]
  
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:123 [[Reporting Offshore Trusts]]  
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:126 [[Credit for Foreign IHT]]
  
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:124 [[International Movement of Capital: Reports]]
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:'''''<span style="font-size:106%">Administration</span>'''''
  
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:125 [[Money Laundering]]
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:127 [[Reporting and Compliance]]
  
 +
:128 [[Tax Return Filing Position]]
  
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''Appendices'':
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:129 [[Claims]]
  
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''Words & Concepts''
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: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]]
 +
 
 +
:'''''<span style="font-size:106%">CRS & Money Laundering</span>'''''
 +
 
 +
:136 [[Common Reporting Standard]]
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 +
:137 [[Trust Registration (TRS)]]
 +
 
 +
:138 [[Customer Due Diligence]]
 +
 
 +
:139 [[Money Laundering: Criminal Property]]
 +
 
 +
 
 +
 
 +
:'''<big>Appendices</big>'''
 +
 
 +
:'''''<span style="font-size:106%">Words & Concepts</span>'''''
  
 
:[[Appendix 1 Words of Dispute]]
 
:[[Appendix 1 Words of Dispute]]
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:[[Appendix 3 Family Terminology]]  
 
:[[Appendix 3 Family Terminology]]  
  
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:[[Appendix 4 Consideration/Arm's Length/Full Value]]
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:[[Appendix 4 Share/Security Terminology]]
 +
 
 +
:[[Appendix 5 Consideration, Arm's Length, Full Value]]
  
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:[[Appendix 5 Commercial/View to Profit]]
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:[[Appendix 6 Commercial/View to Profit]]
  
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:[[Appendix 5A Offshore Fund/CIS/OEIC]]
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:[[Appendix 7 Beneficial Ownership/Entitlement]]
  
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:[[Appendix 5B Beneficial Ownership/Entitlement]]
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: [[Appendix 8 Domicile]]
  
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:[[Appendix 6 What Do We Mean by "Real"]]
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:'''''<span style="font-size:106%">Statutory Construction</span>'''''
  
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:[[Appendix 7 Deeming Provisions]]
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:[[Appendix 9 Purpose in Tax Statutes]]
  
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''Special taxpayers''
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:[[Appendix 10 Substance and Reality]]
  
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:[[Appendix 8 Parliamentarians]]
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:[[Appendix 11 Deeming Provisions]]
  
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:[[Appendix 9 Visiting Forces]]
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:'''''<span style="font-size:106%">Special Taxpayers</span>'''''
  
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:[[Appendix 10 Students and Teachers]]
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:[[Appendix 12 Parliamentarians]]
  
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''Tax reform''
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:[[Appendix 13 Visiting Forces]]
  
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:[[Appendix 11 How to Improve Residence and Domicile Taxation]]
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:[[Appendix 14 Diplomats]]
  
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:[[Appendix 12 Reform of Offshore Anti-avoidance Law]]
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:[[Appendix 15 Sovereign Immunity]]
  
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:[[Appendix 13 The Wisdom of Parliament]]
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:[[Appendix 16 Students and Teachers]]
  
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:[[Appendix 14 Purpose in Tax Statutes]]
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:[[Appendix 17 Continental Shelf]]
  
 +
:'''''<span style="font-size:106%">Tax Reform</span>'''''
  
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</div>
+
:[[Appendix 18 How to Improve Private Client Taxation]]
  
 +
:[[Appendix 19 Reform of Offshore Anti-Avoidance Law]]
  
−
<big>'''New 2022/23 edition out soon'''</big>
+
:[[Appendix 20 Citizenship-based Taxation]]
  
−
The new 2022/23 edition of ''Taxation of Non-residents and Foreign Domiciliaries'' will be published online on 6 April 2022 and in paper form shortly thereafter.
+
:[[Appendix 21 The Wisdom of Parliament]]
  
−
At present this site contains the text of the 2021/22 edition.
 
  
−
To access TFD 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 the 2021/22 edition will no longer be valid from 6 April 2022.
+
</div>
  
−
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]
 
  
−
<big>'''How to login'''</big>
+
<big>'''2025/26 edition'''</big>
  
−
Most of this site requires you [[Special:Userlogin|to login]].  To obtain a login licence:
+
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.
  
−
- 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].
+
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>
  
−
- Every copy of the printed book has a 3 week trial licence (see inside front 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].
+
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].
  
 
Without logging in, you can access:
 
Without logging in, you can access:
  
−
Chapter 1 [[Foreign Domicile: Tax Policy]]<br/>Chapter 2 [[Tax Avoidance]].
+
Chapter 1 [[Mobile Individuals: Tax Policy]]<br/>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.
Line 388: Line 422:
 
<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.  
−
 
−
'''Note''':  ''You may need to input your current log-in name and password to access the archive editions, even if you are already logged in to the site for the current online edition''. 
 
  
 
<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 Rebecca Sheldon, who reviews online contributions, [mailto:RebeccaSheldon@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]
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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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