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<big>This site provides comprehensive information about:
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<big>[https://www.kessler.co.uk James Kessler's] ''Private Client Taxation'' aims to set out a comprehensive discussion of private client taxation.  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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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].   
+
This is a wide subject, or set of subjects, but in taxation, as in life, everything is connected.
 +
 
 +
''PCT Online'' is the successor to ''Taxation of Non-Residents and Foreign Domiciliaries''. The reforms of the FA 2025, which one might summarise as the abolition of domicile, required a new title.  But the approach of this work is unaltered.
  
 
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<div style="float: left; width: 33%">
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<big>'''Contents'''</big>
 
<big>'''Contents'''</big>
  
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[[Update]]
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'''[[Update]]'''
  
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[[Introduction]]
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:''[[Introduction]]''
  
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:1  [[Foreign Domicile: Tax Policy]]
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:''[[Dedication]]''
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 +
:'''''<span style="font-size:87%">Mobile Individuals Policy & Avoidance</span>'''''
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 +
:1  [[Mobile Individuals: Tax Policy]]
  
 
:2  [[Tax Avoidance]]
 
:2  [[Tax Avoidance]]
  
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:3  [[Domicile]]  
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:3  [[Targeted Anti-Avoidance Rules (TAARs)]]
 +
 
 +
:'''''<span style="font-size:87%">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]]
  
 
:7  [[Treaty-Residence]]
 
:7  [[Treaty-Residence]]
  
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:8  [[Exit Taxes]]
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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  [[The Remittance Basis]]
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:11  [[UK Arrival or Departure: Tax Checklist]]
  
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:12  [[The Meaning of Remittance]]
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:'''''<span style="font-size:87%">Income Tax: Principles</span>'''''
  
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:13 [[Remittance Reliefs]]
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:12 [[Income and its Categorisation]]
  
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:14 [[Mixed Funds]]
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:13 [[Source/Territorial Principles]]
  
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:15 [[Income Categories and Sources]]
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:14 [[Income Recognition: Receive/Entitled/Arise/Paid]]
  
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:16  [[Trading Income]]
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:'''''<span style="font-size:87%">FIG Relief: TRF & Former Remittance Basis</span>'''''
  
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:17 [[Trading in Land]]
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:15 [[FIG Relief & Overseas Workday Relief]]
  
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:18 [[Entertainers and Sportspeople]]
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:16 [[Temporary Repatriation Facility]]
  
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:19 [[Property Income]]
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:17 [[The Remittance Basis]]
  
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:20 [[Deduction of interest from Property Income]]
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:18 [[Remittance Reliefs]]
  
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:21 [[Interest Income]]
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:19 [[Mixed Funds]]
  
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:22  [[Exempt Interest of Non-Residents]]
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:'''''<span style="font-size:87%">Income by Category</span>'''''
  
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:23 [[Dividend Income]]
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:20 [[Trading Income]]
  
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:24  [[Royalty Income]]
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:21 [[Cessations & Trading Stock]]
  
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:25 [[Misc Sweep-Up Income]]
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:22 [[Trading in Land]]
  
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:26 [[Employment Income]]
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:23 [[Performers]]
  
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:27 [[Travel Expenses: Employment Income]]
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:24 [[Property Income]]
  
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:28 [[PAYE]]
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:25 [[Deduction of interest from Property Income]]
  
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:29 [[Employment Income: DT Relief]]
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:26 [[Interest Income]]
  
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:30 [[Pension and Annuity Income]]
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:27 [[Exempt Interest of Non-Residents]]
  
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:31 [[Discretionary Trusts: Income Tax]]
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:28 [[Accrued Income Profits]]
  
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:32 [[IIP Trusts: Income Tax]]
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:29 [[Deeply Discounted Securities]]
  
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:33 [[Settlor-interested Trust Code]]
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:30 [[Dividend Income]]
  
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:34 [[Transfer of Assets Abroad: Introduction]]
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:31 [[Corporation Tax on Company Distributions]]  
  
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:35 [[Transfer of Assets Abroad: Transferors]]
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:32 [[Annual Payments]]
  
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:36 [[Transfer of Assets Abroad: Benefits]]
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:33 [[Intellectual Property Income]]
  
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:37 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
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:34 [[Misc Sweep-Up Income]]
  
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:38  [[Transfer of Assets Abroad: Motive Defence]]
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:'''''<span style="font-size:87%">Employment Income</span>'''''
  
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:39 [[Life Policies and Contracts]]
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:35 [[Employment Income]]
  
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:40 [[Offshore Funds: Definition]]
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:36 [[Travel Expenses]]  
  
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:41 [[Offshore Income Gains]]
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:37 [[PAYE]]
  
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:42 [[Income from Offshore Funds]]
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:38 [[Disguised Remuneration/Trading Income]]
  
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:43 [[Accrued Income Profits]]
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:39 [[Employment Income: DT Relief]]
  
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:44 [[Deeply Discounted Securities]]
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:40 [[Benefit in Kind: Family Home and Chattels]]
  
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:45 [[Unit Trusts]]
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:41 [[Loans from Companies]]
  
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:46  [[Intermediated Securities]]
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:'''''<span style="font-size:87%">IT: General</span>'''''
  
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:47 [[Partnerships]]
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:42 [[Discretionary Trusts: Income Tax]]
  
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:48 [[Non-Residents Income Tax Relief]]
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:43 [[IIP Trusts: Income Tax]]
  
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:49 [[Collection of Tax from UK Representatives]]
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:44 [[Rates of Income Tax/CGT/CT]]
  
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:50 [[Investment Manager Exemptions]]
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:45 [[Personal Allowances]]
  
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:51 [[Investment Management Fees & Carried Interest]]
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:46 [[Non-Resident Income Tax Relief]]
  
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:52 [[Loans from Non-Resident Companies]]
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:47 [[National Insurance Contributions]]
  
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:52A [[Transactions in Securities]]
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:'''''<span style="font-size:87%">IT Avoidance Codes</span>'''''
  
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:53 [[Rates of Tax]]
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:48 [[Settlor-interested Trust Code]]
  
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:54 [[Personal Allowances]]
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:49 [[Transfer of Assets Abroad: Introduction]]
  
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:55 [[National Insurance Contributions]]
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:50 [[Transfer of Assets Abroad: Transferors]]
  
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:56 [[Gains of UK Residents]]
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:51 [[Transfer of Assets Abroad: Benefits]]
  
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:57 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
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:52 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
  
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:58 [[Capital Payments from Non-Resident Trusts: s.87]]
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:53 [[Transfer of Assets Abroad: Motive Defence]]
  
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:59 [[Borrowing by Non-resident Trust: Sch 4B]]
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:54 [[Pre-2025 Protected Trust Income]]
  
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:60 [[Protected Trust Reliefs]]
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:55 [[Profit Fragmentation]]
  
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:61 [[Sub-Funds]]
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:56 [[Transfer of Income Streams]]
  
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:62 [[Gains of Non-Resident Companies]]
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:57 [[Transactions in Securities]]
  
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:63  [[Capital Losses]]
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:'''''<span style="font-size:87%">Capital Gains Tax</span>'''''
  
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:64 [[Foreign Currency Issues]]
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:58 [[Chargeable Gains]]
  
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:65 [[Unremittable Assets]]
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:59 [[UK Property Held by Non-Residents]]
  
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:66  [[Double Taxation Arrangements: Introduction]]
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:60 [[Hold-over Relief]]
  
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:67  [[DTA Anti-abuse Rules]]
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:61 [[Liquidation of Companies]]
  
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:68 [[Foreign Tax Credit Relief]]
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:62 [[Reorganisations]]
  
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:69 [[EU Law and UK Taxation]]
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:63 [[Residential Property: CGT]]
  
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:70 [[Excluded Property: Definition]]
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:64 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
  
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:71 [[Excluded Property Exemptions]]
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:65 [[Capital Payments from Non-Resident Trusts: s.87 Code]]
  
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:72 [[Wills and IOVs]]
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:66 [[Borrowing by Non-Resident Trust: Sch 4B]]
  
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:73 [[Reservation of Benefit]]
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:67 [[Sub-Funds]]
  
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:74 [[Inter-Trust Transfers: IHT]]
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:68 [[Gains of Non-Resident Companies]]
  
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:75 [[IHT Deduction for Debts]]
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:69 [[Capital Losses]]
  
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:76  [[IHT Double Taxation Treaties: Introduction]]
+
:'''''<span style="font-size:87%">Funds</span>'''''
  
−
:77 [[IHT DTAs: India, Pakistan, Italy, France]]
+
:70 [[Funds: Terms & Concepts]]
  
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:78 [[IHT DTA: USA]]
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:71 [[Offshore Income Gains]]
  
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:79 [[IHT DTA: Switzerland]]
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:72 [[Income from Offshore Funds]]
  
−
:80 [[IHT DTA: Netherlands]]
+
:73 [[Unit Trusts & Transparent Funds]]
  
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:81 [[Foreign IHT Credit Relief]]
+
:74 [[Life Policies and Contracts]]
  
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:82 [[Non-dom/Non-resident Spouse]]
+
:75 [[Intermediated Securities]]
  
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:83  [[Private Residence Relief]]
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:'''''<span style="font-size:87%">Investment Management</span>'''''
  
−
:84 [[Residential Property of Non-Residents: NRCGT]]
+
:76 [[Investment Manager Exemptions]]
  
−
:85 [[Family Home and Chattels: Benefit in Kind Charges]]
+
:77 [[Carried Interest/Investment Management Fees: Introduction]]
  
−
:86 [[ATED Taxes]]
+
:78 [[Carried Interest]]
  
−
:87 [[Residential property: IHT]]
+
:79 [[Investment Management Fees]]
  
−
:88  [[Pre-Owned Assets]]
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:'''''<span style="font-size:87%">Inheritance Tax</span>'''''
  
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:89 [[Joint Accounts]]
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:80 [[IHT Terms and Concepts]]
  
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:90 [[Estates of Deceased Persons: CGT]]
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:81 [[Normal Expenditure Relief]]
  
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:91 [[Estates of Deceased Persons: Income Tax]]
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:82 [[Excluded Property: Definition]]
  
−
:92 [[Who is the Settlor?]]
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:83 [[Excluded Property Exemptions]]
  
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:93 [[Trusts with Two or More Settlors]]
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:84 [[Wills and IOVs]]
  
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:94 [[Situs of Assets for IHT]]
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:85 [[Reservation of Benefit]]
  
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:95 [[Situs of Assets for CGT]]
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:86 [[Inter-Trust Transfers: IHT]]
  
−
:96 [[Foreign Entities]]
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:87 [[IHT Treatment of Debts]]
  
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:97 [[Hybrid Entities]]
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:88 [[IHT Close-Company Code]]
  
−
:98 [[Control Connected Close and Related Expressions]]
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:89 [[IHT Residential-Property Code]]
  
−
:99 [[Permanent Establishment and Branch/Agency]]
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:90 [[Pre-Owned Assets]]
  
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:100  [[Disclosure and Compliance]]
+
:'''''<span style="font-size:87%">Partnerships</span>'''''
  
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:101 [[Disclosure on Death]]
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:91 [[Partnerships]]
  
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:NEW [[Reporting Beneficial Ownership]]
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:92  [[Partnership Income: Allocation]]
  
−
:102 [[Disclosure of Offshore Trusts]]
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:93  [[Salaried Members Code]]
  
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:NEW [[Requirement to Correct]]
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:94  [[Partnerships CGT]]
  
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:103  [[Criminal Law and Professional Conduct]]
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:'''''<span style="font-size:87%">Entities</span>'''''
  
−
<big>'''Appendices'''</big>
+
:95  [[Settlement, Bare Trust, and Associated Terminology]]
  
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:[[Appendix 1: Common Expressions]] Part 1
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:96  [[Estates of Deceased Persons: CGT]]
  
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:[[Appendix 1: Family Terminology]] Part 2
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:97  [[Estates of Deceased Persons: Income Tax]]
  
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:[[Appendix 2: Consideration, Arm's Length/Full Value]]
+
:98  [[Foreign Entities]]
  
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:[[Appendix 3: Associated Operations: IHT]]
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:99  [[Hybrid Entities]]
  
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:[[Appendix 4: Construction of Deeming Provisions]]
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:'''''<span style="font-size:87%">Pensions & Employment Benefit Trusts</span>'''''
  
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:[[Appendix 5: What Do We Mean by "Real"?]]
+
:100  [[Pension and Annuity Income]]
  
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:[[Appendix 6: Parliamentarians]]
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:101  [[Employer-Financed Retirement Benefits Scheme]]
  
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:[[Appendix 7: Visiting Forces]]
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:102  [[Pension IHT]]
  
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:[[Appendix 8: How to Improve Residence and Domicile Taxation]]
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:'''''<span style="font-size:87%">Topics Affecting More Than One Tax</span>'''''
  
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:[[Appendix 9: Reform of Offshore Anti-avoidance Rules]]
+
:103 [[Non-Resident Spouse]]
  
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:[[Appendix 10: UK Arrival or Departure: Tax Checklist]]
+
:104 [[Joint Accounts]]
  
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:[[Appendix 11: Welsh Devolution]]
+
:105 [[Foreign Currency Issues]]
 +
 
 +
:106 [[Cryptoassets]]
 +
 
 +
:107 [[Unremittable Assets]]
 +
 
 +
:108 [[ATED and SDLT]]
 +
 
 +
:109 [[Who is the Settlor?]]
 +
 
 +
:110 [[Multiple Settlors]]
 +
 
 +
:111 [[Statutory Tax Indemnities]]
 +
 
 +
:112 [[Situs of Assets for IHT]]
 +
 
 +
:113 [[Situs of Assets for CGT]]
 +
 
 +
:114 [[Control Connected Close and Related Expressions]]
 +
 
 +
:115 [[Participation, % Investment & Material Interest Tests]]
 +
 
 +
:116 [[Permanent Establishment]]
 +
 
 +
:'''''<span style="font-size:87%">Double Taxation Agreements: IT/CGT</span>'''''
 +
 
 +
:117 [[Double Taxation Arrangements: Introduction]]
 +
 
 +
:118 [[DTA Anti-abuse Rules]]
 +
 
 +
:119 [[Third Party Relief/Savings Clause]]
 +
 
 +
:120 [[Limitation on Benefits]]
 +
 
 +
:121[[Credit for Foreign Tax]]
 +
 
 +
:122 [[Non-discrimination]]
 +
 
 +
:123 [[Mutual Agreement Procedure]]
 +
 
 +
:'''''<span style="font-size:87%">Double Taxation Agreements: IHT</span>'''''
 +
 
 +
:124 [[IHT Double Taxation Treaties: Introduction]]
 +
 
 +
:125 [[IHT DTAs: India, Pakistan, Italy, France]]
 +
 
 +
:126 [[IHT DTA: South Africa]]
 +
 
 +
:127 [[IHT DTA: USA]]
 +
 
 +
:128 [[IHT DTA: Netherlands]]
 +
 
 +
:129 [[IHT DTA: Switzerland]]
 +
 
 +
:130 [[Credit for Foreign IHT]]
 +
 
 +
:'''''<span style="font-size:87%">Administration</span>'''''
 +
 
 +
:131 [[Reporting and Compliance]]
 +
 
 +
:132 [[Tax Return Filing Position]]
 +
 
 +
:133 [[Claims]]
 +
 
 +
:134 [[Collection of IT/CGT from UK Representatives]]
 +
 
 +
:135 [[Collection of Tax Across Borders]]
 +
 
 +
:136 [[Reporting and Compliance: IHT]]
 +
 
 +
:137 [[Penalties]]
 +
 
 +
:138 [[Failure to Prevent Tax Evasion]]
 +
 
 +
:139 [[Reporting Offshore Trusts]]
 +
 
 +
:140 [[International Movement of Capital: Reports]]
 +
 
 +
:'''''<span style="font-size:87%">CRS & Money Laundering</span>'''''
 +
 
 +
:141 [[Common Reporting Standard]]
 +
 
 +
:142 [[Trust Registration (TRS)]]
 +
 
 +
:143 [[Customer Due Diligence]]
 +
 
 +
:144 [[Money Laundering: POCA]]
 +
 
 +
 
 +
:'''Appendices'''
 +
 
 +
:'''''<span style="font-size:87%">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]]
 +
 
 +
:[[Appendix 7 Beneficial Ownership/Entitlement]]
 +
 
 +
:[[Appendix 8 Domicile]]
 +
 
 +
:'''''<span style="font-size:87%">Statutory Construction</span>'''''
 +
 
 +
:[[Appendix 9 Construction of Tax Statutes]]
 +
 
 +
:[[Appendix 10 Substance and Reality]]
 +
 
 +
:[[Appendix 11 Deeming Provisions]]
 +
 
 +
:'''''<span style="font-size:87%">Special Taxpayers</span>'''''
 +
 
 +
:[[Appendix 12 Parliamentarians]]
 +
 
 +
:[[Appendix 13 Visiting Forces]]
 +
 
 +
:[[Appendix 14 Diplomats]]
 +
 
 +
:[[Appendix 15 Sovereign Immunity]]
 +
 
 +
:[[Appendix 16 Students and Teachers]]
 +
 
 +
:[[Appendix 17 Continental Shelf]]
 +
 
 +
:'''''<span style="font-size:87%">Tax Reform</span>'''''
 +
 
 +
:[[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]]
  
−
:[[Appendix 12: The Wisdom of Parliament]]
 
  
  
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<big>'''New 2018/19 edition now out'''</big>
+
<big>'''2026/27 edition'''</big>
  
−
The new 2018/19 edition of the book is now out.
+
----
  
−
To order copies of the new edition, and online licences for 2018/19 [mailto:[email protected]?Subject=TFD%20enquiry email the publishers] or [http://khpplc.co.uk/ go to the publishers' website].
+
The 2026/27 edition of ''Kessler on Private Client Taxation'' is now online.  It has been substantially updated for the FA 2026 and other developments since last year, and online publication of chapters remaining to be updated will be phased in over the next few weeks.
  
−
There is a special arrangement for holders of licences for the 2017/18 edition.  The useful life of the 2017 licence was cut short, because the new Finance Bill timetable brought this year's Finance Bill forward from July to March. Accordingly holders of 2017/18 licences qualify for a discount when purchasing licences for the 2018/19 edition of TFD online. The discount is 50% of the cost of the 2017/18 licences.
+
To access PCT online, you will need an online licence. To obtain this, go to  
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[https://www.khpplc.co.uk/ the publishers website] or email [mailto:aw.[email protected]?Subject=TFD%20online [email protected]] Licences for previous editions are not valid for the current edition.
  
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Holders of old (2017/18) licences no longer have access to the 2018/19 edition. For that you will need a new 2018/19 licence.
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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:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
  
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    Every copy of the printed book has a 3 week trial licence (see inside back cover of volume 1)
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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:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
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[[Introduction]]<br/>Chapter 1 [[Mobile Individuals: Tax Policy]]<br/>Chapter 2 [[Tax Avoidance]]
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    Without logging in, you can access: chap 1 [[Foreign Domicile: Tax Policy]]; chap 2 [[Tax Avoidance]].
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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 with the password for the current edition. Registration for an earlier edition is not valid.
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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>
  
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Users can also [[contribute to the text]] and if you can add anything extra which is worth saying, 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/barrister/maryashley/ Mary Ashley].
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Users can also [[contribute to the text]] and if you can add anything, or spot anything that needs to be corrected, please do!  A free subscription to the next edition of this work 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]. 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.
  
 
<big>'''If you want further advice'''</big>
 
<big>'''If you want further advice'''</big>
  
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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 to advise.  See [[How to instruct James Kessler QC]].
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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>'''Old editions archive'''</big>
  
−
There are [[archive editions]] for years since 2003/04.  These will occasionally 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:[email protected]?Subject=TFD%20Technical%20query click here]
 
If you have technical problems, or problems logging in, [mailto:[email protected]?Subject=TFD%20Technical%20query click here]
  
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To contact James Kessler QC [mailto:kessler@kessler.co.uk?Subject=TFD%20online click here]
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To contact James Kessler KC [mailto:jkessler@15oldsquare.co.uk?Subject=TFD%20online click here]
  
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To contact Mary Ashley, who reviews online contributions, [mailto:MaryAshley@15oldsquare.co.uk?Subject=TFD%20contact%20moderator%20request click here]
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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:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
 
For multiple user licences, or to install on a firm's intranet, [mailto:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
  
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<big>'''Technical notes'''</big>
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<big>'''Resource Archive'''</big>  
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TFD online is in technical terms 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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To access material referenced in PCT, click here: [[PCT Resource Archive]]

Latest revision as of 14:41, 20 April 2026

James Kessler's Private Client Taxation aims to set out a comprehensive discussion of private client taxation. 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 subject, or set of subjects, but in taxation, as in life, everything is connected.

PCT Online is the successor to Taxation of Non-Residents and Foreign Domiciliaries. The reforms of the FA 2025, which one might summarise as the abolition of domicile, required a new title. But the approach of this work is unaltered.

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 Cessations & Trading Stock
22 Trading in Land
23 Performers
24 Property Income
25 Deduction of interest from Property Income
26 Interest Income
27 Exempt Interest of Non-Residents
28 Accrued Income Profits
29 Deeply Discounted Securities
30 Dividend Income
31 Corporation Tax on Company Distributions
32 Annual Payments
33 Intellectual Property Income
34 Misc Sweep-Up Income
Employment Income
35 Employment Income
36 Travel Expenses
37 PAYE
38 Disguised Remuneration/Trading Income
39 Employment Income: DT Relief
40 Benefit in Kind: Family Home and Chattels
41 Loans from Companies
IT: General
42 Discretionary Trusts: Income Tax
43 IIP Trusts: Income Tax
44 Rates of Income Tax/CGT/CT
45 Personal Allowances
46 Non-Resident Income Tax Relief
47 National Insurance Contributions
IT Avoidance Codes
48 Settlor-interested Trust Code
49 Transfer of Assets Abroad: Introduction
50 Transfer of Assets Abroad: Transferors
51 Transfer of Assets Abroad: Benefits
52 Transfer of Assets Abroad: Relief from Overlapping Charges
53 Transfer of Assets Abroad: Motive Defence
54 Pre-2025 Protected Trust Income
55 Profit Fragmentation
56 Transfer of Income Streams
57 Transactions in Securities
Capital Gains Tax
58 Chargeable Gains
59 UK Property Held by Non-Residents
60 Hold-over Relief
61 Liquidation of Companies
62 Reorganisations
63 Residential Property: CGT
64 Gains of Non-Resident Settlor-Interested Trusts: s.86
65 Capital Payments from Non-Resident Trusts: s.87 Code
66 Borrowing by Non-Resident Trust: Sch 4B
67 Sub-Funds
68 Gains of Non-Resident Companies
69 Capital Losses
Funds
70 Funds: Terms & Concepts
71 Offshore Income Gains
72 Income from Offshore Funds
73 Unit Trusts & Transparent Funds
74 Life Policies and Contracts
75 Intermediated Securities
Investment Management
76 Investment Manager Exemptions
77 Carried Interest/Investment Management Fees: Introduction
78 Carried Interest
79 Investment Management Fees
Inheritance Tax
80 IHT Terms and Concepts
81 Normal Expenditure Relief
82 Excluded Property: Definition
83 Excluded Property Exemptions
84 Wills and IOVs
85 Reservation of Benefit
86 Inter-Trust Transfers: IHT
87 IHT Treatment of Debts
88 IHT Close-Company Code
89 IHT Residential-Property Code
90 Pre-Owned Assets
Partnerships
91 Partnerships
92 Partnership Income: Allocation
93 Salaried Members Code
94 Partnerships CGT
Entities
95 Settlement, Bare Trust, and Associated Terminology
96 Estates of Deceased Persons: CGT
97 Estates of Deceased Persons: Income Tax
98 Foreign Entities
99 Hybrid Entities
Pensions & Employment Benefit Trusts
100 Pension and Annuity Income
101 Employer-Financed Retirement Benefits Scheme
102 Pension IHT
Topics Affecting More Than One Tax
103 Non-Resident Spouse
104 Joint Accounts
105 Foreign Currency Issues
106 Cryptoassets
107 Unremittable Assets
108 ATED and SDLT
109 Who is the Settlor?
110 Multiple Settlors
111 Statutory Tax Indemnities
112 Situs of Assets for IHT
113 Situs of Assets for CGT
114 Control Connected Close and Related Expressions
115 Participation, % Investment & Material Interest Tests
116 Permanent Establishment
Double Taxation Agreements: IT/CGT
117 Double Taxation Arrangements: Introduction
118 DTA Anti-abuse Rules
119 Third Party Relief/Savings Clause
120 Limitation on Benefits
121Credit for Foreign Tax
122 Non-discrimination
123 Mutual Agreement Procedure
Double Taxation Agreements: IHT
124 IHT Double Taxation Treaties: Introduction
125 IHT DTAs: India, Pakistan, Italy, France
126 IHT DTA: South Africa
127 IHT DTA: USA
128 IHT DTA: Netherlands
129 IHT DTA: Switzerland
130 Credit for Foreign IHT
Administration
131 Reporting and Compliance
132 Tax Return Filing Position
133 Claims
134 Collection of IT/CGT from UK Representatives
135 Collection of Tax Across Borders
136 Reporting and Compliance: IHT
137 Penalties
138 Failure to Prevent Tax Evasion
139 Reporting Offshore Trusts
140 International Movement of Capital: Reports
CRS & Money Laundering
141 Common Reporting Standard
142 Trust Registration (TRS)
143 Customer Due Diligence
144 Money Laundering: POCA


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 Construction of 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



2026/27 edition

The 2026/27 edition of Kessler on Private Client Taxation is now online. It has been substantially updated for the FA 2026 and other developments since last year, and online publication of chapters remaining to be updated will be phased in over the next few weeks.

To access PCT online, you will need an online licence. To obtain this, go to the publishers website or email [email protected] 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:

Introduction
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.

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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 free subscription to the next edition of this work will be given to the user who makes the most edits. User contributions are reviewed by Rebecca Sheldon. PCT online is a Wiki on the lines of Wikipedia, but only registered users can edit the text.

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.

Old editions archive

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

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Resource Archive

To access material referenced in PCT, click here: PCT Resource Archive

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