Domicile Rules and Inheritance Tax
What is Non Domicile or Domicile?
Domicile is a legal term peculiar to English law. As many countries have adopted and copied the English Common Law system, many also have 'domicile' laws.
Think of domicile as your natural and permanent home. The place where you plan to be buried. The place where you plan to return to if you move overseas.
If you are domiciled or deemed domicile in the United Kingdom, your estate is subject to UK inheritance tax on worldwide assets.
You can live in Spain for thirty years and own a house there, but if you were born in the UK and you keep a bank account or retain a small property in the UK, i.e. it can be clearly seen that you may intend to return to the UK to live, you are subject to UK Inheritance tax rules on death on worldwide assets.
Domicile at Birth - your Domicile of Origin
In England and Wales, you acquire your domicile from your father's domicile, although if you are illegitimate you take your mother's domicile. In Scotland, your domicile of origin is where you spend your childhood years living.
Marriage before 1974: a wife who married before January 1974 automatically takes her husband's domicile.
Inheritance Tax for UK Domiciles
What if I move overseas, can I change my domicile? Acquire a Domicile of Choice