ACCA Advanced Taxation (ATX) Practice Exam

What conditions apply for formerly UK domiciled residents to be deemed UK domiciled?

1. If they were born in the UK and domicile of origin is UK

2. If they have lived in the UK for over 10 years

3. If they are married to a UK citizen

4. If they have investments in the UK

The correct answer is: If they were born in the UK and domicile of origin is UK

The condition that allows formerly UK domiciled residents to be deemed UK domiciled is if they were born in the UK and their domicile of origin is the UK. Domicile of origin refers to the country where an individual has their permanent home, typically linked to where they were born. If a person was born in the UK and has not changed their domicile status, they retain that domicile of origin, making them deemed UK domiciled for tax purposes, even if they have since acquired a domicile elsewhere. Thus, this condition recognizes the strong ties to the UK that birth establishes. Factors such as the length of residence in the UK, marital status, or mere investments in the UK do not provide sufficient basis for being deemed UK domiciled unless they are accompanied by a clear link to the individual's domicile status. Each of these factors alone lacks the definitive connection to domicile that being born in the UK provides, which is why they do not qualify as conditions for being deemed UK domiciled under the rules.