Definition
Domicile is the country you consider your permanent legal home where you intend to settle long-term, which determines which country's laws apply to your inheritance and estate.
Understanding your domicile is critical for estate planning because it affects which country's succession laws govern your assets and, historically until April 2025, determined UK inheritance tax liability on your worldwide estate.
What Does Domicile Mean?
Domicile is a fundamental common law concept determining your permanent legal home country. Unlike your residence (where you currently live) or nationality (your passport country), domicile reflects where you have your deepest legal and personal roots. Established at birth as your "domicile of origin"—typically your father's domicile when you were born—domicile continues throughout your life unless you deliberately acquire a new "domicile of choice" by permanently settling elsewhere with clear intention never to return. A third category, "deemed domicile," was a tax concept for long-term UK residents that applied until 6 April 2025. Everyone has a domicile at all times, but only one at any given moment.
Acquiring a domicile of choice requires far more than simply relocating. You must physically reside in the new country AND prove genuine, settled intention to make it your permanent home indefinitely with no plan to return to your domicile of origin. Courts require substantial evidence: property ownership, employment, family relocation, severing ties with origin country, social integration, and stated intentions in wills or official documents. Even living abroad for 20+ years may not change your domicile if you maintain intention to return "eventually." Your domicile of origin automatically revives if you abandon a domicile of choice without acquiring another—making UK domicile of origin notoriously difficult to shed.
Until 6 April 2025, domicile determined inheritance tax liability scope: UK-domiciled individuals paid IHT on worldwide assets, while non-domiciled individuals only paid IHT on UK assets. "Deemed domicile" rules caught long-term UK residents (15 out of 20 years) in the UK IHT net even without actual domicile change. From 6 April 2025, the Finance Act 2024 replaced this with a "long-term UK resident" test—individuals resident for 10 out of 20 years now face UK IHT on worldwide assets regardless of actual domicile. Sarah, born in the UK but living in France for 8 years, remained UK-domiciled because she intended to return eventually. When she died in 2024, her £2 million worldwide estate (including her French villa) faced UK inheritance tax because of her UK domicile, even though she was French tax resident.
However, domicile remains essential for deaths before April 2025, will interpretation, succession law, and non-tax legal matters. Your domicile determines which country's succession laws apply to moveable property (money, possessions, investments), though immoveable property (land, buildings) is governed by its location. Will validity requirements—such as number of witnesses—can vary based on domicile. Many UK-domiciled expats create separate wills: one in the UK for UK assets and another in their residence country for local assets, ensuring both comply with each jurisdiction's requirements and avoiding probate complications.
David, a French national who moved to London in 2015, became a long-term UK resident by 2025 (resident for 10 of the previous 20 tax years). When he dies in 2026, his worldwide estate will face UK inheritance tax under the new residence-based rules, regardless of his French domicile of origin. This demonstrates how the 2025 reforms fundamentally changed tax treatment while domicile continues to govern succession law.
Common Questions
"I'm a British citizen who's lived in Spain for 10 years—what's my domicile?" You likely remain UK-domiciled unless you've acquired a Spanish domicile of choice by proving you intend to live in Spain permanently with no intention of returning to the UK. Simply living abroad doesn't change your domicile; you must demonstrate genuine intention to make Spain your permanent home forever with substantial evidence. Most British expats retain UK domicile even after many years abroad.
"Does my domicile affect my will if I live overseas?" Yes, significantly. Your domicile determines which country's succession laws apply to your moveable assets (money, possessions, investments), though property is governed by its location regardless of domicile. If you're UK-domiciled living abroad, UK law governs your personal property worldwide, which may conflict with local rules. Many expats create separate wills for different jurisdictions to ensure compliance and avoid probate complications.
"How do the April 2025 inheritance tax changes affect my domicile?" From 6 April 2025, domicile no longer determines UK inheritance tax liability—it's been replaced by a "long-term UK resident" test based on living in the UK for 10 out of the previous 20 tax years. However, domicile still matters for deaths before April 2025, will interpretation, succession law, and non-tax legal matters. Transitional provisions apply to those who were non-domiciled on 30 October 2024.
Common Misconceptions
Myth: Domicile is the same as residence or nationality
Reality: Domicile, residence, and nationality are three distinct concepts. Nationality is your passport country and citizenship status. Residence is where you physically live during a tax year, determined annually. Domicile is your permanent legal home where you intend to settle for life—a long-term concept that rarely changes. You can be resident in France, hold British nationality, yet retain UK domicile if you intend to return to the UK permanently.
Myth: I can easily change my domicile by moving countries
Reality: Acquiring a domicile of choice requires far more than simply moving. You must physically reside in the new country AND prove genuine, settled intention to make it your permanent home indefinitely with no plan to return. Courts require substantial evidence: property ownership, employment, family relocation, severing ties with origin country, and stated intentions in wills or official documents. Even living abroad for decades may not change your domicile if you maintain intention to return "eventually."
Related Terms
Understanding Domicile connects to these related concepts:
- Expat Will: Expat wills are specifically designed for UK-domiciled individuals living abroad or foreign nationals in the UK. Understanding your domicile determines whether you need an expat will and which jurisdiction's succession laws apply to your assets.
- International Assets: Domicile determines how international assets (property, investments, bank accounts held outside your residence country) are treated for inheritance tax and succession purposes, requiring complex cross-border estate planning.
- Residence: Residence and domicile are frequently confused but fundamentally different. Residence is where you currently live (tested annually), while domicile is your permanent legal home (rarely changes). Residence is now the primary test for IHT from April 2025 onward.
- Inheritance Tax: Historically, domicile determined the scope of UK inheritance tax liability—UK-domiciled individuals paid IHT on worldwide assets. From 6 April 2025, residence status (not domicile) determines IHT scope, though domicile remains relevant for estates where death occurred before this date.
- Non-Domiciled: Non-domiciled (or "non-dom") refers to individuals whose domicile is outside the UK, historically offering tax advantages by limiting UK IHT to UK-situs assets only. The non-dom regime was abolished on 6 April 2025, replaced by residence-based taxation.
Related Articles
- Understanding International Estate Planning: Explores estate planning for individuals with international connections, where domicile status is a fundamental consideration that determines tax liability, succession law application, and will validity across jurisdictions.
- UK Inheritance Tax Rules and Planning: Covers UK inheritance tax rules where domicile historically played a central role in determining liability scope, addressing both pre-2025 domicile rules and post-2025 residence-based system.
- Non-Domiciled Status: What Changed in 2025: Examines non-domiciled status and the tax advantages it historically provided before the April 2025 reforms replaced domicile-based taxation with residence-based rules.
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Legal Disclaimer: This glossary entry provides general information about domicile under UK law and does not constitute legal or tax advice. Domicile is a complex concept with significant tax and legal implications. For advice specific to your situation—particularly if you have international connections, have lived in multiple countries, or are planning to change your domicile—consult a qualified solicitor or tax advisor with expertise in international estate planning.