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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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It is the online version 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 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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:[[Introduction]]
 
:[[Introduction]]
  
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:1  [[Foreign Domicile: Tax Policy]]
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:[[Dedication]]
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:'''''<span style="font-size:106%"> Mobile Individuals Policy & Avoidance</span>'''''
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:1  [[Mobile Individuals: Tax Policy]]
  
 
:2  [[Tax Avoidance]]
 
:2  [[Tax Avoidance]]
  
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:3  [[Domicile]]  
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:3  [[Targeted Anti-Avoidance Rules (TAARs)]]
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:'''''<span style="font-size:106%">Residence</span>'''''
  
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:4  [[Deemed Domicile]]
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:4  [[Residence of Individuals]]
  
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:5  [[Residence of Individuals]]
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:5  [[Residence of Trustees]]
  
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:6  [[Residence of Trustees]]
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:6  [[Residence of Companies]]
  
 
: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:106%">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:106%">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:106%">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 [[Trading in Land]]
  
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:25 [[Misc Sweep-Up Income]]
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:22 [[Performers]]
  
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:26 [[Employment Income]]
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:23 [[Property Income]]
  
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:27 [[Travel Expenses: Employment Income]]
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:24 [[Deduction of interest from Property Income]]
  
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:28 [[PAYE]]
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:25 [[Interest Income]]
  
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:29 [[Employment Income: DT Relief]]
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:26 [[Exempt Interest of Non-Residents]]
  
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:30 [[Pension and Annuity Income]]
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:27 [[Accrued Income Profits]]
  
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:31 [[Discretionary Trusts: Income Tax]]
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:28 [[Deeply Discounted Securities]]
  
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:32 [[IIP Trusts: Income Tax]]
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:29 [[Dividend Income]]
  
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:33 [[Settlor-interested Trust Code]]
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:30 [[Corporation Tax on Company Distributions]]
  
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:34 [[Transfer of Assets Abroad: Introduction]]
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:31 [[Annual Payments]]
  
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:35 [[Transfer of Assets Abroad: Transferors]]
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:32 [[Intellectual Property Income]]
  
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:36 [[Transfer of Assets Abroad: Benefits]]
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:33 [[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:106%">Employment Income</span>'''''
  
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:38 [[Transfer of Assets Abroad: Motive Defence]]
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:34 [[Employment Income]]
  
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:39 [[Life Policies and Contracts]]
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:35 [[Travel Expenses: Employment Income]]
  
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:40 [[Offshore Funds: Definition]]
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:36 [[PAYE]]
  
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:41 [[Offshore Income Gains]]
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:37 [[Disguised Remuneration/Trading Income]]
  
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:42 [[Income from Offshore Funds]]
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:38 [[Employment Income: DT Relief]]
  
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:43 [[Accrued Income Profits]]
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:39 [[Benefit in Kind: Family Home and Chattels]]
  
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:44 [[Deeply Discounted Securities]]
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:40 [[Loans from Companies]]
  
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:45  [[Unit Trusts]]
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:'''''<span style="font-size:106%">IT: General</span>'''''
  
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:46 [[Intermediated Securities]]
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:41 [[Discretionary Trusts: Income Tax]]
  
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:47 [[Partnerships]]
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:42 [[IIP Trusts: Income Tax]]
  
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:48 [[Non-Residents Income Tax Relief]]
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:43 [[Rates of Income Tax/CGT]]
  
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:49 [[Collection of Tax from UK Representatives]]
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:44 [[Personal Allowances]]
  
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:50 [[Investment Manager Exemptions]]
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:45 [[Non-Resident Income Tax Relief]]
  
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:51 [[Investment Management Fees & Carried Interest]]
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:46 [[National Insurance Contributions]]
  
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:52  [[Loans from Non-Resident Companies]]
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:'''''<span style="font-size:106%">IT Avoidance Codes</span>'''''
  
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:53 [[Rates of Tax]]
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:47 [[Settlor-interested Trust Code]]
  
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:54 [[Personal Allowances]]
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:48 [[Transfer of Assets Abroad: Introduction]]
  
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:55 [[National Insurance Contributions]]
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:49 [[Transfer of Assets Abroad: Transferors]]
  
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:56 [[Gains of UK Residents]]
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:50 [[Transfer of Assets Abroad: Benefits]]
  
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:57 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
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:51 [[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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:52 [[Transfer of Assets Abroad: Motive Defence]]
  
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:59 [[Borrowing by Non-resident Trust: Sch 4B]]
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:53 [[Profit Fragmentation]]
  
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:60 [[Protected Trust Reliefs]]
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:54 [[Transfer of Income Streams]]
  
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:61 [[Sub-Funds]]
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:55 [[Transactions in Securities]]
  
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:62  [[Gains of Non-Resident Companies]]
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:'''''<span style="font-size:106%">Capital Gains Tax</span>'''''
  
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:63 [[Capital Losses]]
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:56 [[Chargeable Gains]]
  
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:64 [[Foreign Currency Issues]]
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:57 [[UK Property Held by Non-Residents]]
  
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:65 [[Unremittable Assets]]
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:58 [[Reorganisations]]
  
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:66 [[Double Taxation Arrangements: Introduction]]
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:59 [[Residential Property: CGT]]
  
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:67 [[DTA Anti-abuse Rules]]
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:60 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
  
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:68 [[Foreign Tax Credit Relief]]
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:61 [[Capital Payments from Non-Resident Trusts: s.87 Code]]
  
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:69 [[EU Law and UK Taxation]]
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:62 [[Borrowing by Non-Resident Trust: Sch 4B]]
  
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:70 [[Excluded Property: Definition]]
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:63 [[Sub-Funds]]
  
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:71 [[Excluded Property Exemptions]]
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:64 [[Gains of Non-Resident Companies]]
  
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:72 [[Wills and IOVs]]
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:65 [[Capital Losses]]
  
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:73  [[Reservation of Benefit]]
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:'''''<span style="font-size:106%">Funds</span>'''''
  
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:74 [[Inter-Trust Transfers: IHT]]
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:66 [[Funds: Terms & Concepts]]
  
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:75 [[IHT Deduction for Debts]]
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:67 [[Offshore Income Gains]]
  
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:76 [[IHT Double Taxation Treaties: Introduction]]
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:68 [[Income from Offshore Funds]]
  
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:77 [[IHT DTAs: India, Pakistan, Italy, France]]
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:69 [[Unit Trusts]]
  
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:78 [[IHT DTA: USA]]
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:70 [[Life Policies and Contracts]]
  
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:79 [[IHT DTA: Switzerland]]
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:71 [[Intermediated Securities]]
  
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:80  [[IHT DTA: Netherlands]]
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:'''''<span style="font-size:106%">Investment Management</span>'''''
  
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:81 [[Foreign IHT Credit Relief]]
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:72 [[Investment Manager Exemptions]]
  
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:82 [[Non-dom/Non-resident Spouse]]
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:73 [[Carried Interest/Investment Management Fees: Introduction]]
  
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:83 [[Private Residence Relief]]
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:74 [[Carried Interest]]
  
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:84 [[Residential Property of Non-Residents: NRCGT]]
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:75 [[Investment Management Fees]]
  
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:85  [[Family Home and Chattels: Benefit in Kind Charges]]
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:'''''<span style="font-size:106%">Inheritance Tax</span>'''''
  
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:86 [[ATED Taxes]]
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:76 [[IHT Terms and Concepts]]
  
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:87 [[Residential property: IHT]]
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:77 [[Excluded Property: Definition]]
  
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:88 [[Pre-Owned Assets]]
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:78 [[Excluded Property Exemptions]]
  
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:89 [[Joint Accounts]]
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:79 [[Wills and IOVs]]
  
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:90 [[Estates of Deceased Persons: CGT]]
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:80 [[Reservation of Benefit]]
  
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:91 [[Estates of Deceased Persons: Income Tax]]
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:81 [[Inter-Trust Transfers: IHT]]
  
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:92 [[Who is the Settlor?]]
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:82 [[IHT Deduction for Debts]]
  
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:93 [[Trusts with Two or More Settlors]]
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:83 [[IHT Close-Company Code]]
  
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:94 [[Situs of Assets for IHT]]
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:84 [[IHT Residential-Property Code]]
  
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:95 [[Situs of Assets for CGT]]
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:85 [[Pre-Owned Assets]]
  
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:96  [[Foreign Entities]]
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:'''''<span style="font-size:106%">Partnerships</span>'''''
  
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:97 [[Hybrid Entities]]
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:86 [[Partnerships]]
  
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:98 [[Control Connected Close and Related Expressions]]
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:87 [[Partnership Income: Allocation]]
  
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:99 [[Permanent Establishment and Branch/Agency]]
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:88 [[Salaried Members Code]]
  
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:100 [[Disclosure and Compliance]]
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:89 [[Partnerships CGT]]
  
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:101  [[Disclosure on Death ]]
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:'''''<span style="font-size:106%">Entities</span>'''''
  
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:102 [[Disclosure of Offshore Trusts]]
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:90  [[Settlement, Bare Trust, and Associated Terminology]]
  
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:103 [[Criminal Law and Professional Conduct]]
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:91 [[Estates of Deceased Persons: CGT]]
  
 +
:92  [[Estates of Deceased Persons: Income Tax]]
  
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:[[Appendix 1: Common Expressions]]
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:93  [[Foreign Entities]]
  
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:[[Appendix 2: Consideration, Arm's Length/Full Value]]
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:94  [[Hybrid Entities]]
  
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:[[Appendix 3: Associated Operations: IHT]]
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:'''''<span style="font-size:106%">Pensions & Employment Benefit Trusts</span>'''''
  
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:[[Appendix 4: Construction of Deeming Provisions]]
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:95  [[Pension and Annuity Income]]
  
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:[[Appendix 5: What Do We Mean by "Real"?]]
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:96  [[Employer-Financed Retirement Benefits Scheme]]
  
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:[[Appendix 6: Parliamentarians]]
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:97  [[Pension IHT]]
  
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:[[Appendix 7: Visiting Forces]]
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:'''''<span style="font-size:106%">Topics affecting more than one tax</span>'''''
  
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:[[Appendix 8: How to Improve Residence and Domicile Taxation]]
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:98  [[Protected Trusts]]
  
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:[[Appendix 9: Reform of Offshore Anti-avoidance Rules]]
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:99  [[Non-Resident Spouse]]
  
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:[[Appendix 10: UK Arrival or Departure: Tax Checklist]]
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:100 [[Joint Accounts]]
  
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:[[Appendix 11: Welsh Devolution]]
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:101 [[Foreign Currency Issues]]
  
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:[[Appendix 12: The Wisdom of Parliament]]
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:102 [[Cryptoassets]]
  
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</div>
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:103 [[Unremittable Assets]]
  
 +
:104 [[ATED and SDLT]]
  
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<big>'''New 2018/19 edition update in progress'''</big>
+
:105 [[Who is the Settlor?]]
  
−
The new 2018/19 edition of the book has gone to the printers, and should be available at the end of April.
+
:106 [[Multiple Settlors]]
  
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Work is now underway to update the online text to the text of the 2018/19 edition of the book. While this work is in progress, chapters which have/have not been updated will be clearly marked.
+
:107 [[Statutory Tax Indemnities]]
  
−
To order copies of the new edition, and online licences for 2018/19 [mailto:aw@khpplc.co.uk?Subject=TFD%20enquiry email the publishers] or [http://khpplc.co.uk/ go to the publishers' website].
+
:108 [[Situs of Assets for IHT]]
  
−
There is a special arrangement for holders of licences for the 2017/18 edition.  The useful life of the licence was cut short this year, 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.
+
:109 [[Situs of Assets for CGT]]
  
−
Once the updating to 2018/19 online edition is complete, holders of old (2017/18) licences will still have online access to the 2017/18 text of TFD, until the end of August. But they will not have access to the 2018/19 edition.  For that you will need a new 2018/19 licence.
+
:110 [[Control Connected Close and Related Expressions]]
  
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<big>'''How to login'''</big>
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:111 [[Participation, % Investment & Material Interest Tests]]
  
−
Most of this site requires you [[Special:Userlogin|to login]].  To obtain a login licence:
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:112 [[Permanent Establishment and Branch/Agency]]
 +
 
 +
:'''''<span style="font-size:106%">Double Taxation Agreements: IT/CGT</span>'''''
 +
 
 +
: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]]
 +
 
 +
:'''''<span style="font-size:106%">Double Taxation Agreements: IHT</span>'''''
 +
 
 +
: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]]
 +
 
 +
:'''''<span style="font-size:106%">Administration</span>'''''
 +
 
 +
: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]]
 +
 
 +
:'''''<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 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:106%">Statutory Construction</span>'''''
 +
 
 +
:[[Appendix 9 Purpose in Tax Statutes]]
 +
 
 +
:[[Appendix 10 Substance and Reality]]
 +
 
 +
:[[Appendix 11 Deeming Provisions]]
 +
 
 +
:'''''<span style="font-size:106%">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:106%">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]]
 +
 
 +
 
 +
 
 +
</div>
 +
 
 +
 
 +
<big>'''2025/26 edition'''</big>
 +
 
 +
The 2025/26 edition of ''Kessler on Private Client Taxation'' is available online and will be published in paper form in July.  The online form is the better choice as it is updated during the year.
 +
 
 +
To access PCT online, you will need an online licence. To obtain this, go to
 +
[https://www.khpplc.co.uk/ the publishers website] or email [mailto:aw.khpplc@khpplc.co.uk?Subject=TFD%20online aw.khpplc@khpplc.co.uk] Licences for previous editions are not valid for the current edition.
 +
 
 +
If you are an academic, student or other non-tax practitioner who wants access for research purposes, [mailto:jkessler@15oldsquare.co.uk?Subject=TFD%20online contact James Kessler]
 +
 
 +
<big>'''How to login'''</big>
  
−
::* Every copy of the printed book has a 3 week trial licence (see inside back cover of volume 1)
+
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].
  
−
::*  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: chap 1 [[Foreign Domicile: Tax Policy]]; chap 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.
  
−
You need to register with the password for the current edition. Registration for an earlier edition is not valid.
+
You need to register for the current edition. Registration for an earlier edition is no longer valid.
  
 
<big>'''Comments please'''</big>
 
<big>'''Comments please'''</big>
  
−
Users can also [[contribute to the text]] and if you can add anything 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/maryashley/ Mary Ashley].   
+
Users can also [[contribute to the text]] and if you can add anything, or spot anything that needs to be corrected, please do!  A copy of the next edition of the book will be given to the user who makes the most edits.  User contributions are reviewed by [https://www.taxchambers.com/team/rebecca-sheldon/ Rebecca Sheldon].   
  
 
<big>'''If you want further advice'''</big>
 
<big>'''If you want further advice'''</big>
  
−
If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler QC 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 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: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 Mary Ashley, who reviews online contributions, [mailto:MaryAshley@15oldsquare.co.uk?Subject=TFD%20contact%20moderator%20request click here]
+
To contact Rebecca Sheldon, who reviews online contributions, [mailto:RebeccaSheldon@15oldsquare.co.uk?Subject=TFD%20contact%20moderator%20request click here]
  
 
For multiple user licences, or to install on a firm's intranet, [mailto:mv.khpplc@khpplc.co.uk?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
 
For multiple user licences, or to install on a firm's intranet, [mailto:mv.khpplc@khpplc.co.uk?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
Line 298: Line 440:
 
<big>'''Technical notes'''</big>
 
<big>'''Technical notes'''</big>
  
−
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.
+
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

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