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<big>This site provides comprehensive information about:
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<big>This site is the successor to [https://www.kessler.co.uk James Kessler's]''Taxation of Non-Residents and Foreign Domiciliaries''.  The reforms of the FA 2025, which one might summarise as the abolition of domicile, have required a new title.  But the approach of this work is unaltered.  It seeks to provide as much information as possible about the UK taxation of individuals and trusts, the broad topic known as private client tax.  Discussion includes:
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# Taxation of foreign domiciliaries
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# Income Tax, CGT and IHT on individuals and trusts
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# Taxation of non-residents on UK income and assets
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# The territorial limits of UK tax (now based on residence, situs and source)
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# Taxation of UK residents on foreign income and assets
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# Other topics arising in this context, including tax avoidance, disclosure and compliance
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# Other topics arising in this context, including tax avoidance, and disclosure and compliance
+
  
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It is the online version of [https://www.kessler.co.uk/taxation-of-foreign-domiciliaries/ ''Taxation of Non-Residents and Foreign Domiciliaries''] by [https://www.kessler.co.uk James Kessler QC].   
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This is a wide set of subjects, but in taxation, as in life, everything is connected.
 +
 
 +
The mammoth task of updating the text is still underway, and discussion of the new law will continue to go online over the course of the year.  In the meantime, the rubric to some chapters will warn readers where the text has not yet been updated.
  
 
<div style="float: left; width: 33%">
 
<div style="float: left; width: 33%">
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<big>'''Contents'''</big>
 
<big>'''Contents'''</big>
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[[Update]]
 
[[Update]]
  
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[[Introduction]]
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:[[Introduction]]
  
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<span style="color:#000080">''Non-dom Policy & Avoidance:''</span>
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:[[Dedication]]
  
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:1  [[Foreign Domicile: Tax Policy]]
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:'''''<span style="font-size:106%"> Mobile Individuals Policy & Avoidance</span>'''''
 +
 
 +
:1  [[Mobile Individuals: Tax Policy]]
  
 
:2  [[Tax Avoidance]]
 
:2  [[Tax Avoidance]]
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:3  [[Targeted Anti-Avoidance Rules (TAARs)]]
 
:3  [[Targeted Anti-Avoidance Rules (TAARs)]]
  
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<span style="color:#000080">''Domicile & Residence:''</span>
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:'''''<span style="font-size:106%">Residence</span>'''''
 +
 
 +
:4  [[Residence of Individuals]]
  
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:4   [[Domicile]]  
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:5   [[Residence of Trustees]]
  
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:5   [[Deemed Domicile]]
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:6   [[Residence of Companies]]
  
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:6   [[Residence of Individuals]]
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:7   [[Treaty-Residence]]
  
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:7   [[Residence of Trustees]]
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:8   [[Split Years]]
  
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:8   [[Residence of Companies]]
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:9   [[Temporary Non-residence]]
  
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:9  [[Treaty-Residence]]
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:10  [[Exit Taxes]]
  
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:10  [[Split Years: Arrival and Departure]]
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:11  [[UK Arrival or Departure: Tax Checklist]]
  
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:11  [[Temporary Non-residence]] 
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:'''''<span style="font-size:106%">Income Tax: Principles</span>'''''
  
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:12  [[Exit Taxes]]
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:12  [[Income and its Categorisation]]
  
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:13  [[UK Arrival or Departure: Tax Checklist]]
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:13  [[Source/Territorial Principles]]
  
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<span style="color:#000080">''Income Tax: Principles & Remittance Basis:''</span>
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:14  [[Income Recognition: Receive/Entitled/Arise/Paid]]
  
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:14  [[Income Categorisation]]
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:'''''<span style="font-size:106%">FIG Relief: TRF & Former Remittance Basis</span>'''''
  
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:15  [[Income Recognition: Receive/Entitled/Arise/Paid]]
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:15  [[FIG Relief & Overseas Workday Relief]]
  
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:16  [[Source/RFI/Territorial Principles]]  
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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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<span style="color:#000080">''Income by Category:''</span>
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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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: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  [[Benefit in Kind: Loans from Non-Resident Companies]]
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:40  [[Loans from Companies]]
  
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<span style="color:#000080">''IT: General:''</span>
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:'''''<span style="font-size:106%">IT: General</span>'''''
  
 
:41  [[Discretionary Trusts: Income Tax]]
 
:41  [[Discretionary Trusts: Income Tax]]
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:44  [[Personal Allowances]]
 
:44  [[Personal Allowances]]
  
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:45  [[Non-Residents Income Tax Relief]]
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:45  [[Non-Resident Income Tax Relief]]
  
 
:46  [[National Insurance Contributions]]
 
:46  [[National Insurance Contributions]]
  
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<span style="color:#000080">''IT Avoidance Codes:''</span>
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:'''''<span style="font-size:106%">IT Avoidance Codes</span>'''''
  
 
:47  [[Settlor-interested Trust Code]]
 
:47  [[Settlor-interested Trust Code]]
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:55  [[Transactions in Securities]]
 
:55  [[Transactions in Securities]]
  
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<span style="color:#000080">''Capital Gains Tax:''</span>
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:'''''<span style="font-size:106%">Capital Gains Tax</span>'''''
  
 
:56  [[Chargeable Gains]]
 
:56  [[Chargeable Gains]]
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:57  [[UK Property Held by Non-Residents]]
 
:57  [[UK Property Held by Non-Residents]]
  
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:58  [[Residential Property: CGT]]
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:58  [[Reorganisations]]
  
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:59  [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
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:59  [[Residential Property: CGT]]
  
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:60  [[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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:61  [[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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:62  [[Sub-Funds]]
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:62  [[Borrowing by Non-Resident Trust: Sch 4B]]
  
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:63  [[Gains of Non-Resident Companies]]
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:63  [[Sub-Funds]]
  
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:64  [[Capital Losses]]
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:64  [[Gains of Non-Resident Companies]]
  
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<span style="color:#000080">''Funds:''</span>
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:65  [[Capital Losses]]
  
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:65  [[Life Policies and Contracts]]
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:'''''<span style="font-size:106%">Funds</span>'''''
  
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:66  [[Offshore Income Gains]]
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:66  [[Funds: Terms & Concepts]]
  
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:67  [[Income from Offshore Funds]]
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:67  [[Offshore Income Gains]]
  
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:68  [[Unit Trusts]]
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:68  [[Income from Offshore Funds]]
  
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:69  [[Intermediated Securities]]
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:69  [[Unit Trusts]]
  
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:70  [[Investment Manager Exemptions]]
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:70  [[Life Policies and Contracts]]
  
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:71  [[Investment Management Fees & Carried Interest]]
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:71  [[Intermediated Securities]]
  
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<span style="color:#000080">''Inheritance Tax:''</span>
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:'''''<span style="font-size:106%">Investment Management</span>'''''
  
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:72  [[IHT Terms and Concepts]]
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:72  [[Investment Manager Exemptions]]
  
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:73  [[Excluded Property: Definition]]
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:73  [[Carried Interest/Investment Management Fees: Introduction]]
  
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:74  [[Excluded Property Exemptions]]
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:74  [[Carried Interest]]
  
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:75  [[Wills and IOVs]]
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:75  [[Investment Management Fees]]
  
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:76  [[Reservation of Benefit]]
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:'''''<span style="font-size:106%">Inheritance Tax</span>'''''
  
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:77 [[Inter-Trust Transfers: IHT]]
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:76 [[IHT Terms and Concepts]]
  
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:78 [[IHT Deduction for Debts]]
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:77 [[Excluded Property: Definition]]
  
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:79 [[IHT Close-Company Code]]
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:78 [[Excluded Property Exemptions]]
  
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:80 [[IHT Residential Property Code]]
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:79 [[Wills and IOVs]]
  
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:81 [[Pre-Owned Assets]]
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:80 [[Reservation of Benefit]]
  
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:82 [[Pension Schemes and IHT]]
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:81 [[Inter-Trust Transfers: IHT]]
  
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<span style="color:#000080">''Entities:''</span>
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:82  [[IHT Deduction for Debts]]
  
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:83  [[Partnerships]]
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:83  [[IHT Close-Company Code]]
  
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:84  [[Partnership Income: Attribution]]
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:84  [[IHT Residential-Property Code]]
  
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:85  [[Settlement, Bare Trust, and Associated Terminology]]
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:85  [[Pre-Owned Assets]]
  
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:86  [[Estates of Deceased Persons: CGT]]
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:'''''<span style="font-size:106%">Partnerships</span>'''''
  
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:87 [[Estates of Deceased Persons: Income Tax]]
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:86 [[Partnerships]]
  
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:88 [[Foreign Entities]]
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:87 [[Partnership Income: Allocation]]
  
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:89 [[Hybrid Entities]]
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:88 [[Salaried Members Code]]
  
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<span style="color:#000080">''Topics Affecting More Than One Tax:''</span>
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:89  [[Partnerships CGT]]
  
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:90  [[Protected Trusts]]
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:'''''<span style="font-size:106%">Entities</span>'''''
  
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:91 [[Non-Dom/Non-Resident Spouse]]
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:90 [[Settlement, Bare Trust, and Associated Terminology]]
  
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:92 [[Joint Accounts]]
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:91 [[Estates of Deceased Persons: CGT]]
  
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:93 [[Foreign Currency Issues]]
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:92 [[Estates of Deceased Persons: Income Tax]]
  
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:94 [[Unremittable Assets]]
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:93 [[Foreign Entities]]
  
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:95 [[ATED and SDLT]]
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:94 [[Hybrid Entities]]
  
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:96  [[Who is the Settlor?]]
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:'''''<span style="font-size:106%">Pensions & Employment Benefit Trusts</span>'''''
  
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:97 [[Multiple Settlors]]
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:95 [[Pension and Annuity Income]]
  
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:98 [[Statutory Tax Indemnities]]
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:96 [[Employer-Financed Retirement Benefits Scheme]]
  
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:99 [[Situs of Assets for IHT]]
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:97 [[Pension IHT]]
  
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:100 [[Situs of Assets for CGT]]
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:'''''<span style="font-size:106%">Topics affecting more than one tax</span>'''''
  
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:101 [[Control Connected Close and Related Expressions]]
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:98  [[Protected Trusts]]
  
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:102 [[Participation & % Investment Tests]]
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:99  [[Non-Resident Spouse]]
  
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:103 [[Permanent Establishment and Branch/Agency]]
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:100 [[Joint Accounts]]
  
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:104 [[Post-Brexit EU Law]]
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:101 [[Foreign Currency Issues]]
  
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<span style="color:#000080">''Double Taxation Agreements IT/CGT:''</span>
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:102 [[Cryptoassets]]
  
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:105 [[Double Taxation Arrangements: Introduction]]
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:103 [[Unremittable Assets]]
  
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:106 [[DTA Anti-abuse Rules]]
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:104 [[ATED and SDLT]]
  
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:107 [[Limitation on Benefits]]
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:105 [[Who is the Settlor?]]
  
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:108 [[Credit for Foreign Tax]]
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:106 [[Multiple Settlors]]
  
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:109 [[Non-discrimination]]
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:107 [[Statutory Tax Indemnities]]
  
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<span style="color:#000080">''Double Taxation Agreements: IHT:''</span>
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:108 [[Situs of Assets for IHT]]
  
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:110 [[IHT Double Taxation Treaties: Introduction]]
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:109 [[Situs of Assets for CGT]]
  
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:111 [[IHT DTAs: India, Pakistan, Italy, France]]
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:110 [[Control Connected Close and Related Expressions]]
  
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:112 [[IHT DTA: Netherlands]]
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:111 [[Participation, % Investment & Material Interest Tests]]
  
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:113 [[IHT DTA: South Africa]]
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:112 [[Permanent Establishment and Branch/Agency]]
  
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:114 [[IHT DTA: Switzerland]]
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:'''''<span style="font-size:106%">Double Taxation Agreements: IT/CGT</span>'''''
  
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:115 [[IHT DTA: USA]]
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:113 [[Double Taxation Arrangements: Introduction]]
  
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:116 [[Credit for Foreign IHT]]
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:114 [[DTA Anti-abuse Rules]]
  
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<span style="color:#000080">''Administration:''</span>
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:115 [[Third Party Relief/Savings Clause]]
  
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:117 [[Reporting and Compliance]]
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:116 [[Limitation on Benefits]]
  
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:118 [[Tax Return Filing Position]]
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:117 [[Credit for Foreign Tax]]
  
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:119 [[Claims]]
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:118 [[Non-discrimination]]
  
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:120 [[Collection of Tax from UK Representatives]]
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:119 [[Mutual Agreement Procedure]]
  
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:121 [[Reporting and Compliance: IHT]]
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:'''''<span style="font-size:106%">Double Taxation Agreements: IHT</span>'''''
  
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:122 [[Penalties]]
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:120 [[IHT Double Taxation Treaties: Introduction]]
  
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:123 [[Failure to Prevent Tax Evasion]]
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:121 [[IHT DTAs: India, Pakistan, Italy, France]]
  
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:124 [[Common Reporting Standard]]
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:122 [[IHT DTA: South Africa]]
  
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:125 [[Trust Registration]]
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:123 [[IHT DTA: USA]]
  
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:126 [[Reporting Offshore Trusts]]  
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:124 [[IHT DTA: Netherlands]]
  
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:127 [[International Movement of Capital: Reports]]
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:125 [[IHT DTA: Switzerland]]
  
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:128 [[Money Laundering]]
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:126 [[Credit for Foreign IHT]]
  
 +
:'''''<span style="font-size:106%">Administration</span>'''''
  
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<big>'''Appendices'''</big>
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:127 [[Reporting and Compliance]]
  
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<span style="color:#000080">''Words & Concepts:''</span>
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: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]]
 +
 
 +
:'''''<span style="font-size:106%">CRS & Money Laundering</span>'''''
 +
 
 +
:136 [[Common Reporting Standard]]
 +
 
 +
: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 6 Beneficial Ownership/Entitlement]]
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:[[Appendix 7 Beneficial Ownership/Entitlement]]
  
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:[[Appendix 7 Offshore Fund/CIS/OEIC]]
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: [[Appendix 8 Domicile]]
  
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:[[Appendix 8 What Do We Mean by "Real"]]
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:'''''<span style="font-size:106%">Statutory Construction</span>'''''
  
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<span style="color:#000080">''Construction of Statutes:''</span>
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:[[Appendix 9 Purpose in Tax Statutes]]
  
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:[[Appendix 9 Deeming Provisions]]
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:[[Appendix 10 Substance and Reality]]
  
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:[[Appendix 10 Purpose of Statute]]
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:[[Appendix 11 Deeming Provisions]]
  
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<span style="color:#000080">''Special Taxpayers:''</span>
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:'''''<span style="font-size:106%">Special Taxpayers</span>'''''
  
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:[[Appendix 11 Parliamentarians]]
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:[[Appendix 12 Parliamentarians]]
  
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:[[Appendix 12 Visiting Forces]]
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:[[Appendix 13 Visiting Forces]]
  
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:[[Appendix 13 Students and Teachers]]
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:[[Appendix 14 Diplomats]]
  
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<span style="color:#000080">''Tax Reform:''</span>
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:[[Appendix 15 Sovereign Immunity]]
  
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:[[Appendix 14 How to Improve Residence and Domicile Taxation]]
+
:[[Appendix 16 Students and Teachers]]
  
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:[[Appendix 15 Reform of Offshore Anti-avoidance Law]]
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:[[Appendix 17 Continental Shelf]]
  
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:[[Appendix 16 The Wisdom of Parliament]]
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:'''''<span style="font-size:106%">Tax Reform</span>'''''
  
 +
:[[Appendix 18 How to Improve Private Client Taxation]]
  
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</div>
+
:[[Appendix 19 Reform of Offshore Anti-Avoidance Law]]
  
 +
:[[Appendix 20 Citizenship-based Taxation]]
  
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<big>'''New 2022/23 edition'''</big>
+
:[[Appendix 21 The Wisdom of Parliament]]
  
−
The new 2022/23 edition of ''Taxation of Non-Residents and Foreign Domiciliaries'' is now available online and will be available in paper form shortly.
 
  
−
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.
  
−
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].
+
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>
 +
 
 +
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 380: 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>
Line 392: Line 432:
 
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]
Line 400: Line 440:
 
<big>'''Technical notes'''</big>
 
<big>'''Technical notes'''</big>
  
−
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.
+
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>'''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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