Even once you become a UK resident you may retain your country of origin domicile. Domicile refers to where you belong and is a very hard aspect to alter. You are given a domicile of origin when and where you are born and it remains unchanged unless you decide to obtain a domicile of choice. It is a very difficult decision as it requires you to cut ties with your country of origin
Several factors can be affected by your domicile, including how you are taxed in the UK and your worldwide income.
The starting point for taxations of all UK residents is the worldwide income even in the cases when the income is already taxed in other countries. In most cases if there is a double tax treaty the credit will be given for the tax paid abroad against the tax owed in UK. Although each treaty is unique most follow OECD protocol to ensure that income is only taxed in one country or credit is given to prevent double taxation.
However, in case if you hold a non-UK domicile you can choose to pay tax only on the income and capital gains that you earn or send to UK. The income you earn abroad will not be taxed in UK.
You should anticipate that if you choose to take the remittance basis will mean that you must give up the personal tax free allowance of £11,000 per year. Additionally, when you have been resident in UK for 7 out of 9 years an annual charge of £30,000 will be taken and in 12 out of 14 years you will be subject to pay £60,000. Once you have been a resident for 15 out of 20 tax years you will be deemed to be UK domiciled for all tax purposes.
Remittance Basis Charge (RBC) is considered an advance part payment of tax on the income outside of UK and in general taxpayers should nominate a portion of income yearly to which the charge may be applied. Such nominated income must be determined and not remitted to the UK prior to any other foreign income. You are only required to nominate £1 yearly, however the £1 must be earned in that tax year. Alternatively, you may wish to nominate a much bigger sum of income to be taxed within UK in order to be granted relief from double taxation in another country.
From 5th of April 2017 all residents who have been in UK for 15 out of 20 tax years will be given a deemed domicile for all tax purposes. In this case, even though in all other cases you will still be considered as a foreign domicile, you will be subject to pay all taxes within UK on worldwide income.
On 16 March 2017, the Home Office has released a Statement of Changes to the Immigration Rules. These new changes will affect those applications that need to have a Certificate of Sponsorship and these changes will be in effect on 06 April 2017.
What you should know about European visas after Article 50. The UK Prime Minister Theresa May has so far not changed her mind in regards to the plans of triggering Article 50 before the end of March 2017.
For international students who wish to remain in the UK longer or would like to eventually settle. There are options to choose from, granted you are willing to stay.
As of 16 January 2017 the Prime Minister of the United Kingdom, Theresa May, has given hints that the UK is moving towards a hard Brexit. Although Theresa May insists EU citizens are ‘welcome’ to be in the UK, she cannot guarantee the right of EU citizens in the UK at an early stage. These are troubling news for Europeans and British Citizens currently living and working in the UK.
As of 24 March 2016, the UK government has announced new changes to Tier 2 type visas. This is the migration route for those who have a confirmed job offer to undertake skilled employment in the UK.
The UK government has recently introduced a significant amount of changes to immigration rules and procedures that can influence nationals of European Economic Area. These changes will come into force on the 1st February 2017, however, some changes are happening now.
A new Statement of Changes to the Immigration Rules HC667 has been laid down on the 3rd November 2016. These changes come in a whopping 90 pages however, most changes are in the language itself rather than effect. The significant changes include the increase of the minimum salary requirement of Tier 2 skilled workers; the introduction of a fresh English language requirement for family immigration regarding to Tier 4 visa and the removal of the previous 28 days’ grace period for making out of time immigration applications.