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Domicile of Origin

Also known as: Birth Domicile, Original Domicile

Definition

Domicile of origin is the legal "home country" you're automatically assigned at birth based on your parents' domicile, usually your father's if your parents were married.

Understanding your domicile of origin is essential for UK inheritance tax planning, especially if you have international ties or assets abroad.

What Does Domicile of Origin Mean?

Under UK common law, every person acquires a domicile of origin at birth. According to HMRC guidance, your domicile of origin depends on your parents' domicile at the time of your birth—not where you were physically born. If your parents were married, you take your father's domicile. If they were unmarried or your father died before your birth, you take your mother's domicile.

Domicile of origin is never truly lost—only displaced temporarily. You can acquire a domicile of choice by permanently settling in another country with the intention to remain there indefinitely. However, if you later abandon that domicile of choice without acquiring a new one, your domicile of origin automatically revives. This ensures everyone always has a domicile at any given time.

For UK inheritance tax purposes, domicile of origin establishes your baseline tax status. UK-domiciled individuals pay IHT on their worldwide assets (property, investments, savings globally), not just UK-based property. Non-UK domiciled individuals pay IHT only on UK assets. Sarah was born in Madrid to married British parents working temporarily in Spain. Her father remained UK-domiciled throughout. Sarah's domicile of origin is the United Kingdom, not Spain, even though she's never lived there. This means she's UK-domiciled for IHT unless she acquires a domicile of choice elsewhere—her £450,000 worldwide estate would be subject to UK inheritance tax.

UK domicile of origin is particularly difficult to displace. HMRC requires substantial evidence that you've permanently settled elsewhere with genuine intention to stay indefinitely. Simply living abroad for many years isn't sufficient. James moved to Australia at age 30 and acquired an Australian domicile of choice after 25 years there. At age 60, he returned to the UK for retirement without deciding if it's permanent. By abandoning his Australian domicile, James's UK domicile of origin automatically revived, exposing his entire worldwide estate (including his Australian property worth AUD $850,000) to UK IHT.

Common Questions

"Is my domicile of origin the same as my country of birth?"

No, your domicile of origin is not necessarily the country where you were born. If your parents were married when you were born, your domicile of origin is the same as your father's domicile at that time—even if you were born in a different country. If your parents were unmarried, you take your mother's domicile.

"Can I change or lose my domicile of origin?"

You cannot lose your domicile of origin, but you can displace it by acquiring a domicile of choice. This requires permanently settling in another country with the intention to remain there indefinitely. If you later abandon that domicile of choice without acquiring a new one, your domicile of origin automatically revives.

"Why does my domicile of origin matter for inheritance tax?"

Your domicile of origin matters because it determines your default domicile status for UK inheritance tax (IHT) purposes. If you have a UK domicile of origin, you remain UK-domiciled for IHT unless you acquire a domicile of choice elsewhere. UK-domiciled individuals pay IHT on their worldwide assets, not just UK-based property.

Common Misconceptions

Myth: "My domicile of origin is where I was born."

Reality: Your domicile of origin is based on your parents' domicile at your birth, not your geographic birthplace. If your parents were married, you take your father's domicile (even if he was domiciled in a country you've never visited). If they were unmarried, you take your mother's domicile. This legal concept is inherited from your parents and isn't tied to physical location.

Myth: "If I move abroad permanently, I automatically lose my UK domicile of origin."

Reality: Moving abroad does not automatically change your domicile. To displace a UK domicile of origin, you must acquire a domicile of choice by proving you've permanently settled in another country with the intention to remain there indefinitely. HMRC requires substantial evidence of this permanent intention—simply living abroad for many years is not sufficient.

  • Domicile of Choice: The alternative domicile category you can acquire by permanently settling in another country, which displaces your domicile of origin.
  • Deemed Domicile: The statutory rule that treats you as UK-domiciled for IHT purposes after 15 out of 20 years UK residence, even if you have a non-UK domicile of origin.
  • Inheritance Tax (IHT): The tax whose scope depends on your domicile status—UK-domiciled individuals pay IHT on worldwide assets while non-UK domiciled individuals pay only on UK assets.
  • Residency: The contrasting concept often confused with domicile—where you live (residence) is legally distinct from your permanent home country (domicile).
  • International Estate Planning: The broader planning context where understanding your domicile of origin is critical for managing cross-border inheritance and tax exposure.

Need Help with Your Will?

Understanding your domicile of origin is essential for UK inheritance tax planning, especially if you have international ties or assets in multiple countries. Your domicile status determines whether UK IHT applies to your worldwide assets.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.