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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 the 2017/18 edition of [http://www.kessler.co.uk/taxation-of-foreign-domiciliaries/ ''Taxation of Non-Residents and Foreign Domiciliaries''] by [http://www.kessler.co.uk James Kessler QC].   
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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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[[Introduction]]
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'''[[Update]]'''
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 +
:''[[Introduction]]''
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 +
:''[[Dedication]]''
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 +
:'''''<span style="font-size:87%">Mobile Individuals Policy & Avoidance</span>'''''
 +
 
 +
:1  [[Mobile Individuals: Tax Policy]]
  
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:1   [[Foreign Domicile: Tax Policy and Reforms]]
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:2   [[Tax Avoidance]]
  
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:2   [[Tax Avoidance: Public Debate]]
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:3   [[Targeted Anti-Avoidance Rules (TAARs)]]
  
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:3  [[Domicile]]
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:'''''<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: Post-2013 Departures]]
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:10  [[Exit Taxes]]
  
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:10A [[Temporary Non-residence: Pre-2013 Departures]]
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:11 [[UK Arrival or Departure: Tax Checklist]]
  
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:11  [[The Remittance Basis]]
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:'''''<span style="font-size:87%">Income Tax: Principles</span>'''''
  
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:12  [[The Meaning of Remittance]]
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:12  [[Income and its Categorisation]]
  
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:13  [[Remittance Reliefs]]
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:13  [[Source/Territorial Principles]]
  
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:14  [[Mixed Funds]]
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:14  [[Income Recognition: Receive/Entitled/Arise/Paid]]
  
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:15  [[Income Categories and Sources]]
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:'''''<span style="font-size:87%">FIG Relief: TRF & Former Remittance Basis</span>'''''
  
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:16 [[Trading Income]]
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:15 [[FIG Relief & Overseas Workday Relief]]
  
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:17 [[Trading in Land]]
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:16 [[Temporary Repatriation Facility]]
  
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:18 [[Entertainers and Sportspeople]]
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:17 [[The Remittance Basis]]
  
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:19 [[Property Income]]
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:18 [[Remittance Reliefs]]
  
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:20 [[Deduction of interest from Property Income]]
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:19 [[Mixed Funds]]
  
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:21  [[Interest Income]]
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:'''''<span style="font-size:87%">Income by Category</span>'''''
  
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:22 [[Exempt Interest of Non-Residents]]
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:20 [[Trading Income]]
  
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:23  [[Dividend Income]]
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:21 [[Cessations & Trading Stock]]
  
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:24 [[Royalty Income]]
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:22 [[Trading in Land]]
  
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:25 [[Misc Sweep-Up Income]]
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:23 [[Performers]]
  
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:26 [[Employment Income]]
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:24 [[Property Income]]
  
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:27 [[Travel Expenses: Employment Income Deduction]]
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:25 [[Deduction of interest from Property Income]]
  
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:28 [[PAYE]]
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:26 [[Interest Income]]
  
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:29 [[Employment Income: DT Relief]]
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:27 [[Exempt Interest of Non-Residents]]
  
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:30 [[Pension and Annuity Income]]
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:28 [[Accrued Income Profits]]
  
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:31 [[Discretionary Trusts: Income Tax]]
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:29 [[Deeply Discounted Securities]]
  
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:32 [[IIP Trusts: Income Tax]]
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:30 [[Dividend Income]]
  
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:33 [[Settlor-interested Trusts]]
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:31 [[Corporation Tax on Company Distributions]]  
  
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:34 [[Transfer of Assets Abroad: Introduction]]
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:32 [[Annual Payments]]
  
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:35 [[Transfer of Assets Abroad: Transferors]]
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:33 [[Intellectual Property Income]]
  
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:36 [[Transfer of Assets Abroad: Non-transferors]]
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:34 [[Misc Sweep-Up Income]]
  
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:37  [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
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:'''''<span style="font-size:87%">Employment Income</span>'''''
  
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:38 [[Transfer of Assets Abroad: Motive Defence]]
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:35 [[Employment Income]]
  
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:39 [[Life Policies and Contracts]]
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:36 [[Travel Expenses]]  
  
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:40 [[Offshore Funds: Definition]]
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:37 [[PAYE]]
  
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:41 [[Offshore Income Gains]]
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:38 [[Disguised Remuneration/Trading Income]]
  
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:42 [[Income from Offshore Funds]]
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:39 [[Employment Income: DT Relief]]
  
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:43 [[Accrued Income Profits]]
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:40 [[Benefit in Kind: Family Home and Chattels]]
  
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:44 [[Deeply Discounted Securities]]
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:41 [[Loans from Companies]]
  
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:45  [[Unit Trusts]]
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:'''''<span style="font-size:87%">IT: General</span>'''''
  
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:46 [[Intermediated Securities]]
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:42 [[Discretionary Trusts: Income Tax]]
  
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:47 [[Partnerships]]
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:43 [[IIP Trusts: Income Tax]]
  
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:48 [[Non-Residents Income Tax Relief]]
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:44 [[Rates of Income Tax/CGT/CT]]
  
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:49 [[Collection of Tax from UK Representatives]]
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:45 [[Personal Allowances]]
  
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:50 [[Investment Manager Exemptions]]
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:46 [[Non-Resident Income Tax Relief]]
  
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:51 [[Investment Management Fees & Carried Forward]]
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:47 [[National Insurance Contributions]]
  
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:52  [[Loans from Non-Resident Companies]]
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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 and Annual Exemptions]]
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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 Trusts]]
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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]]
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:'''''<span style="font-size:87%">Funds</span>'''''
  
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:77 [[IHT DTAs: India, Pakistan, Italy, France]]
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: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]]
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:73 [[Unit Trusts & Transparent Funds]]
  
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:81 [[Foreign IHT Credit Relief]]
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:74 [[Life Policies and Contracts]]
  
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:82 [[Marriage to Non-dom or Non-resident]]
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:75 [[Intermediated Securities]]
  
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:83  [[Private Residence Relief]]
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:'''''<span style="font-size:87%">Investment Management</span>'''''
  
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:84 [[Residential Property of Non-Residents: NRCGT]]
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:76 [[Investment Manager Exemptions]]
  
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:85 [[Family Home and Chattels: Benefit in Kind Charges]]
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:77 [[Carried Interest/Investment Management Fees: Introduction]]
  
−
:86 [[Corporate Residential Property]]
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:78 [[Carried Interest]]
  
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:87 [[Residential property: IHT]]
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:79 [[Investment Management Fees]]
  
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: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]]
  
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: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]]
  
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: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]]
  
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:98 [[Control Connected Close and Related Expressions]]
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:89 [[IHT Residential-Property Code]]
  
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:99 [[Permanent Establishment and Branch/Agency]]
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:90 [[Pre-Owned Assets]]
  
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:100  [[Disclosure and Compliance]]
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:'''''<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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:102 [[Disclosure of Offshore Trusts]]
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:92  [[Partnership Income: Allocation]]
  
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:103 [[Criminal Law and Professional Conduct]]
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:93 [[Salaried Members Code]]
  
 +
:94  [[Partnerships CGT]]
  
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:[[Appendix 1: Common Expressions]]
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:'''''<span style="font-size:87%">Entities</span>'''''
  
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:[[Appendix 2: Consideration, Arm's Length/Full Value]]
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:95  [[Settlement, Bare Trust, and Associated Terminology]]
  
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:[[Appendix 3: Associated Operations: IHT]]
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:96  [[Estates of Deceased Persons: CGT]]
  
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:[[Appendix 4: Construction of Deeming Provisions]]
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:97  [[Estates of Deceased Persons: Income Tax]]
  
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:[[Appendix 5: What Do We Mean by "Real"?]]
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:98  [[Foreign Entities]]
  
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:[[Appendix 6: Parliamentarians]]
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:99  [[Hybrid Entities]]
  
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:[[Appendix 7: Visiting Forces]]
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:'''''<span style="font-size:87%">Pensions & Employment Benefit Trusts</span>'''''
  
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:[[Appendix 8: How to Improve Residence and Domicile Taxation]]
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:100  [[Pension and Annuity Income]]
  
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:[[Appendix 9: Reform of Offshore Anti-avoidance Rules]]
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:101  [[Employer-Financed Retirement Benefits Scheme]]
 +
 
 +
:102  [[Pension IHT]]
 +
 
 +
:'''''<span style="font-size:87%">Topics Affecting More Than One Tax</span>'''''
 +
 
 +
: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]]
 +
 
 +
:'''''<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]]
  
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:[[Appendix 10: UK Arrival or Departure: Tax Checklist]]
 
  
−
:[[Appendix 11: Welsh Devolution]]
 
  
 
</div>
 
</div>
  
  
−
<big>'''New 2017/18 edition'''</big>
+
<big>'''2026/27 edition'''</big>
  
−
The text of this 2017/18 edition of ''Taxation of Non-residents and Foreign Domiciliaries'' is based on the Finance Bill (March 2017) and draft domicile legislation published July 2017. (At present some chapters remain to be updated: this is noted at the top of the chapter where appropriate. Some further formatting work also remains to be completed.)
+
----
  
−
The printed edition of the book, based on the Finance (no.2) Act in its final form, will be published in November, and the online edition will then be updated to the text of the published book.
+
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 TFD online you will need to order a copy of the new edition with an online licence. To obtain the book, go to [http://www.khpplc.co.uk/products/91/Taxation-of-Non-Residents-and-Foreign-Domiciliaries the publishers online ordering]; to order a licence go to [http://www.khpplc.co.uk/products/82/Taxation-of-Non-Residents-and-Foreign-Domiciliaries-16th-Online-Edition online ordering] or [mailto:[email protected]?Subject=TFD%20online%20enquiry click here]
+
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 [email protected]] Licences for previous editions are not valid for the current edition.
  
−
Licences for the current edition are no longer valid.
+
If you are an academic, student or other non-tax practitioner who wants access for research purposes, [mailto:[email protected].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, go to the publishers online ordering [http://www.khpplc.co.uk/products/82/Taxation-of-Non-Residents-and-Foreign-Domiciliaries-15th-Online-Edition here (book)] and [http://www.khpplc.co.uk/products/82/Taxation-of-Non-Residents-and-Foreign-Domiciliaries-15th-Online-Edition here (licence)].  For multiple user licence [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 and Reforms]]; chap 2 [[Wake Up and Smell the Coffee: Public Debate on Tax Avoidance]]; chap 11A [[Temporary Non-residence: Pre-2013 Departures]].
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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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<big>'''How to comment'''</big>
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<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 [http://www.taxchambers.com/barrister/oliver-marre/ Oliver Marre].
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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>
Line 286: Line 443:
 
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]
+
To contact James Kessler KC [mailto:jkessler@15oldsquare.co.uk?Subject=TFD%20online click here]
  
−
To contact Oliver Marre, who reviews online contributions, [mailto:OliverMarre@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].
 
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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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Site hosting and management by [http://www.highwiredesign.com: Highwire] </big>
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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.

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 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

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.

Resource Archive

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

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