If you’re living in the UK but have roots, homes, or business interests abroad, you’ve probably heard about “non-dom” status. It’s a term that’s often misunderstood, yet it can have a huge impact on your tax bill and how you manage your finances. With big changes coming in April 2025, it’s more important than ever to understand what non-dom status means, how to prove it, and how to plan for the future.

Let’s break down the essentials, using practical examples and clear solutions, so you can make informed decisions and avoid costly mistakes.

Defining Residence vs. Domicile: Statutory Residence Test and Common Law

First, let’s clarify the difference between residence and domicile. Your residence is where you live for tax purposes, usually determined by the Statutory Residence Test (SRT). This test looks at how many days you spend in the UK, your work, and your home arrangements. If you’re in the UK for 183 days or more in a tax year, you’re almost certainly a UK resident.

Domicile, on the other hand, is about where you consider your permanent home. It’s a deeper, more personal connection—often the country your father considered his permanent home when you were born. You can change your domicile if you move abroad and intend to stay there permanently, but it’s not automatic. The UK uses common law principles to decide your domicile, and it’s not always straightforward.

Proving Non-Dom Status to HMRC: Documentation and Practical Steps

If you want to claim non-dom status, you’ll need to show HMRC that your permanent home is outside the UK. This isn’t just about where you were born—it’s about your intentions, your lifestyle, and your connections.

Here’s what you can do:

• Keep records of your overseas homes, business interests, and family ties.

• Document your intentions to return abroad, such as long-term property leases, school enrolments for children, or business plans.

• If you’ve changed your domicile, keep evidence of when and why you made the move—letters, contracts, or statements of intent.

HMRC may ask for proof, especially if you’re claiming the remittance basis or have significant foreign income. Be prepared to explain your situation clearly and provide supporting documents.

Example: International Lifestyle, Multiple Homes, and Offshore Accounts

Let’s look at a real-life scenario. Alex was born in Canada, moved to the UK for work, and now splits his time between London, Toronto, and Dubai. He owns homes in all three cities and has offshore accounts in Switzerland.

Alex wants to claim non-dom status. He keeps detailed records of his travel, maintains his Canadian property as his main home, and has a long-term business in Toronto. He also keeps his UK and foreign bank accounts separate, making sure not to mix funds that could trigger UK tax.

When HMRC asks for evidence, Alex provides copies of his Canadian property deeds, business contracts, and travel logs. He also explains his intention to return to Canada when his UK work contract ends.

Clean Capital: Segregating Funds and Avoiding Accidental Remittance

One of the biggest pitfalls for non-doms is accidentally remitting foreign income or gains to the UK. If you bring money into the UK that’s not “clean capital,” you could face a hefty tax bill.

Clean capital is money that’s already been taxed, or is exempt—like savings from before you became UK resident, or gifts from family. To avoid problems:

• Keep separate bank accounts for clean capital, foreign income, and gains.

• Don’t mix funds—if you transfer money to the UK, make sure it’s from a clean capital account.

• If you’re unsure, get a statement from your bank showing the source of the funds.

For example, if Alex sells his Dubai apartment and wants to use the proceeds to buy a car in London, he checks that the money is clean capital. He keeps the sale proceeds in a separate account and provides documentation to HMRC if asked.

Transition Rules: What’s Changing in 2025 and What to Do Now

From April 2025, the UK is moving to a residence-based system for many tax rules. The concept of domicile will be replaced by long-term residence tests. If you’ve lived in the UK for 10 out of the last 20 years, you’ll be treated as “deemed domiciled” for tax purposes. This means your worldwide assets could be exposed to UK tax, even if you still consider yourself a non-dom.

What should you do?

• Review your residence history and calculate when you’ll be deemed domiciled.

• Audit your bank accounts and asset structures—make sure you’re not mixing clean capital with foreign income.

• If you’re planning to transfer assets or set up trusts, consider doing so before April 2025 to preserve excluded property status.

• Keep clear records and update your estate plan.

Real Example: Navigating the Changes

Sophie, a French citizen, moved to the UK in 2013 for work. She owns a villa in Nice, a flat in London, and has investments in Switzerland. She’s kept her French property as her main home and plans to return to France in 2026.

With the new rules, Sophie reviews her residence history and realises she’ll be deemed domiciled from 2025. She decides to transfer her Swiss investments into a trust before the deadline, keeping them outside the UK tax net. She also keeps her UK and French bank accounts separate, documenting all transfers.

Final Checklist

• Review your residence and domicile status.

• Keep clear records of your homes, business interests, and intentions.

• Segregate clean capital from foreign income and gains.

• Plan asset transfers before April 2025 if needed.

• Update your estate plan and keep documentation ready.

Feeling Overwhelmed? You’re Not Alone

Non-dom status can be complex, but with careful planning and clear records, you can protect your wealth and avoid unexpected tax bills. The rules are changing, but you have options. Take action now, keep asking questions, and make sure your finances reflect your global lifestyle.

Disclaimer: This article provides general information for educational purposes only. It is not legal, financial, or tax advice. Outcomes can vary based on your personal circumstances.