What does the term 'non-domiciled status' refer to?

The term 'non-domiciled status' refers to a tax status where an individual is not considered a permanent resident for tax purposes. This designation often applies to individuals who live and work in a country but whose permanent home or 'domicile' is in another country.

Being classified as non-domiciled generally means that an individual will only pay tax in the country where they reside on their UK income and gains, but not on their foreign income and gains, unless they bring those funds into the country. This can significantly influence tax liabilities and planning strategies for individuals who have substantial income or assets outside the jurisdiction where they live.

Additionally, non-domiciled status can provide various tax benefits, making it a strategic choice for certain expatriates and international workers. Understanding this status is crucial for tax compliance, as it affects how income is reported and taxed.