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<big>This site provides comprehensive information about:
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<big>This site is the successor to [https://www.kessler.co.uk James Kessler's]''Taxation of Non-Residents and Foreign Domiciliaries''.  The reforms of the FA 2025, which one might summarise as the abolition of domicile, have required a new title.  But the approach of this work is unaltered.  It seeks to provide as much information as possible about the UK taxation of individuals and trusts, the broad topic known as private client tax.  Discussion includes:
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# Taxation of foreign domiciliaries
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# Income Tax, CGT and IHT on individuals and trusts
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# Taxation of non-residents on UK income and assets
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# The territorial limits of UK tax (now based on residence, situs and source)
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# Taxation of UK residents on foreign income and assets
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# Other topics arising in this context, including tax avoidance, disclosure and compliance
  
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It is the online version of [http://www.kessler.co.uk/taxation-of-foreign-domiciliaries/ ''Taxation of Non-Residents and Foreign Domiciliaries''] by [http://www.kessler.co.uk James Kessler QC].
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This is a wide set of subjects, but in taxation, as in life, everything is connected.
  
 
<div style="float: left; width: 33%">
 
<div style="float: left; width: 33%">
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:[[Introduction]]
 
:[[Introduction]]
  
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:1  [[Foreign Domicile: Tax Policy]]
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:[[Dedication]]
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:'''''<span style="font-size:106%"> Mobile Individuals Policy & Avoidance</span>'''''
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:1  [[Mobile Individuals: Tax Policy]]
  
 
:2  [[Tax Avoidance]]
 
:2  [[Tax Avoidance]]
  
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:3  [[Domicile]]  
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:3  [[Targeted Anti-Avoidance Rules (TAARs)]]
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 +
:'''''<span style="font-size:106%">Residence</span>'''''
  
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:4  [[Deemed Domicile]]
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:4  [[Residence of Individuals]]
  
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:5  [[Residence of Individuals]]
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:5  [[Residence of Trustees]]
  
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:6  [[Residence of Trustees]]
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:6  [[Residence of Companies]]
  
 
:7  [[Treaty-Residence]]
 
:7  [[Treaty-Residence]]
  
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:8  [[Exit Taxes]]
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:8  [[Split Years]]
  
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:9 [[Split Years: Arrival and Departure]]
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:9   [[Temporary Non-residence]]
  
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:10  [[Temporary Non-residence]]
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:10  [[Exit Taxes]]
  
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:11  [[The Remittance Basis]]
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:11  [[UK Arrival or Departure: Tax Checklist]]
  
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:12  [[The Meaning of Remittance]]
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:'''''<span style="font-size:106%">Income Tax: Principles</span>'''''
  
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:13 [[Remittance Reliefs]]
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:12 [[Income and its Categorisation]]
  
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:14 [[Mixed Funds]]
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:13 [[Source/Territorial Principles]]
  
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:15 [[Income Categories and Sources]]
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:14 [[Income Recognition: Receive/Entitled/Arise/Paid]]
  
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:16  [[Trading Income]]
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:'''''<span style="font-size:106%">FIG Relief: TRF & Former Remittance Basis</span>'''''
  
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:17 [[Trading in Land]]
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:15 [[FIG Relief & Overseas Workday Relief]]
  
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:18 [[Entertainers and Sportspeople]]
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:16 [[Temporary Repatriation Facility]]
  
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:19 [[Property Income]]
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:17 [[The Remittance Basis]]
  
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:20 [[Deduction of interest from Property Income]]
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:18 [[Remittance Reliefs]]
  
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:21 [[Interest Income]]
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:19 [[Mixed Funds]]
  
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:22  [[Exempt Interest of Non-Residents]]
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:'''''<span style="font-size:106%">Income by Category</span>'''''
  
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:23 [[Dividend Income]]
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:20 [[Trading Income]]
  
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:24  [[Royalty Income]]
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:20A [[Cessations and Trading Stock]]
  
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:25 [[Misc Sweep-Up Income]]
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:21 [[Trading in Land]]
  
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:26 [[Employment Income]]
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:22 [[Performers]]
  
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:27 [[Travel Expenses: Employment Income]]
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:23 [[Property Income]]
  
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:28 [[PAYE]]
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:24 [[Deduction of interest from Property Income]]
  
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:29 [[Employment Income: DT Relief]]
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:25 [[Interest Income]]
  
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:30 [[Pension and Annuity Income]]
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:26 [[Exempt Interest of Non-Residents]]
  
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:31 [[Discretionary Trusts: Income Tax]]
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:27 [[Accrued Income Profits]]
  
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:32 [[IIP Trusts: Income Tax]]
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:28 [[Deeply Discounted Securities]]
  
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:33 [[Settlor-interested Trust Code]]
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:29 [[Dividend Income]]
  
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:34 [[Transfer of Assets Abroad: Introduction]]
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:30 [[Corporation Tax on Company Distributions]]
  
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:35 [[Transfer of Assets Abroad: Transferors]]
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:31 [[Annual Payments]]
  
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:36 [[Transfer of Assets Abroad: Benefits]]
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:32 [[Intellectual Property Income]]
  
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:37 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
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:33 [[Misc Sweep-Up Income]]
  
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:38  [[Transfer of Assets Abroad: Motive Defence]]
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:'''''<span style="font-size:106%">Employment Income</span>'''''
  
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:39 [[Life Policies and Contracts]]
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:34 [[Employment Income]]
  
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:40 [[Offshore Funds: Definition]]
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:35 [[Travel Expenses: Employment Income]]
  
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:41 [[Offshore Income Gains]]
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:36 [[PAYE]]
  
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:42 [[Income from Offshore Funds]]
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:37 [[Disguised Remuneration/Trading Income]]
  
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:43 [[Accrued Income Profits]]
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:38 [[Employment Income: DT Relief]]
  
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:44 [[Deeply Discounted Securities]]
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:39 [[Benefit in Kind: Family Home and Chattels]]
  
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:45 [[Unit Trusts]]
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:40 [[Loans from Companies]]
  
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:46  [[Intermediated Securities]]
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:'''''<span style="font-size:106%">IT: General</span>'''''
  
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:47 [[Partnerships]]
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:41 [[Discretionary Trusts: Income Tax]]
  
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:48 [[Non-Residents Income Tax Relief]]
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:42 [[IIP Trusts: Income Tax]]
  
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:49 [[Collection of Tax from UK Representatives]]
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:43 [[Rates of Income Tax/CGT]]
  
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:50 [[Investment Manager Exemptions]]
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:44 [[Personal Allowances]]
  
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:51 [[Investment Management Fees & Carried Interest]]
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:45 [[Non-Resident Income Tax Relief]]
  
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:52 [[Loans from Non-Resident Companies]]
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:46 [[National Insurance Contributions]]
  
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:53  [[Rates of Tax]]
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:'''''<span style="font-size:106%">IT Avoidance Codes</span>'''''
  
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:54 [[Personal Allowances and Annual Exemption]]
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:47 [[Settlor-interested Trust Code]]
  
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:55 [[National Insurance Contributions]]
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:48 [[Transfer of Assets Abroad: Introduction]]
  
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:56 [[Gains of UK Residents]]
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:49 [[Transfer of Assets Abroad: Transferors]]
  
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:57 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
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:50 [[Transfer of Assets Abroad: Benefits]]
  
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:58 [[Capital Payments from Non-Resident Trusts: s.87]]
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:51 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
  
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:59 [[Borrowing by Non-resident Trust: Sch 4B]]
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:52 [[Transfer of Assets Abroad: Motive Defence]]
  
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:60 [[Protected Trust Reliefs]]
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:53 [[Profit Fragmentation]]
  
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:61 [[Sub-Funds]]
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:54 [[Transfer of Income Streams]]
  
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:62 [[Gains of Non-Resident Companies]]
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:55 [[Transactions in Securities]]
  
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:63  [[Capital Losses]]
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:'''''<span style="font-size:106%">Capital Gains Tax</span>'''''
  
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:64 [[Foreign Currency Issues]]
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:56 [[Chargeable Gains]]
  
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:65 [[Unremittable Assets]]
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:57 [[UK Property Held by Non-Residents]]
  
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:66 [[Double Taxation Arrangements: Introduction]]
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:58 [[Reorganisations]]
  
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:67 [[DTA Anti-abuse Rules]]
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:59 [[Residential Property: CGT]]
  
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:68 [[Foreign Tax Credit Relief]]
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:60 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
  
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:69 [[EU Law and UK Taxation]]
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:61 [[Capital Payments from Non-Resident Trusts: s.87 Code]]
  
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:70 [[Excluded Property: Definition]]
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:62 [[Borrowing by Non-Resident Trust: Sch 4B]]
  
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:71 [[Excluded Property Exemptions]]
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:63 [[Sub-Funds]]
  
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:72 [[Wills and IOVs]]
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:64 [[Gains of Non-Resident Companies]]
  
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:73 [[Reservation of Benefit]]
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:65 [[Capital Losses]]
  
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:74  [[Inter-Trust Transfers: IHT]]
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:'''''<span style="font-size:106%">Funds</span>'''''
  
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:75 [[IHT Deduction for Debts]]
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:66 [[Funds: Terms & Concepts]]
  
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:76 [[IHT Double Taxation Treaties: Introduction]]
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:67 [[Offshore Income Gains]]
  
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:77 [[IHT DTAs: India, Pakistan, Italy, France]]
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:68 [[Income from Offshore Funds]]
  
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:78 [[IHT DTA: USA]]
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:69 [[Unit Trusts & Transparent Funds]]
  
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:79 [[IHT DTA: Switzerland]]
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:70 [[Life Policies and Contracts]]
  
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:80 [[IHT DTA: Netherlands]]
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:71 [[Intermediated Securities]]
  
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:81  [[Foreign IHT Credit Relief]]
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:'''''<span style="font-size:106%">Investment Management</span>'''''
  
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:82 [[Marriage to Non-dom or Non-resident]]
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:72 [[Investment Manager Exemptions]]
  
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:83 [[Private Residence Relief]]
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:73 [[Carried Interest/Investment Management Fees: Introduction]]
  
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:84 [[Residential Property of Non-Residents: NRCGT]]
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:74 [[Carried Interest]]
  
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:85 [[Family Home and Chattels: Benefit in Kind Charges]]
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:75 [[Investment Management Fees]]
  
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:86  [[ATED Taxes]]
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:'''''<span style="font-size:106%">Inheritance Tax</span>'''''
  
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:87 [[Residential property: IHT]]
+
:76 [[IHT Terms and Concepts]]
  
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:88 [[Pre-Owned Assets]]
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:77 [[Excluded Property: Definition]]
  
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:89 [[Joint Accounts]]
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:78 [[Excluded Property Exemptions]]
  
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:90 [[Estates of Deceased Persons: CGT]]
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:79 [[Wills and IOVs]]
  
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:91 [[Estates of Deceased Persons: Income Tax]]
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:80 [[Reservation of Benefit]]
  
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:92 [[Who is the Settlor?]]
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:81 [[Inter-Trust Transfers: IHT]]
  
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:93 [[Trusts with Two or More Settlors]]
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:82 [[IHT Treatment of Debts]]
  
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:94 [[Situs of Assets for IHT]]
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:83 [[IHT Close-Company Code]]
  
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:95 [[Situs of Assets for CGT]]
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:84 [[IHT Residential-Property Code]]
  
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:96 [[Foreign Entities]]
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:85 [[Pre-Owned Assets]]
  
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:97  [[Hybrid Entities]]
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:'''''<span style="font-size:106%">Partnerships</span>'''''
  
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:98 [[Control Connected Close and Related Expressions]]
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:86 [[Partnerships]]
  
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:99 [[Permanent Establishment and Branch/Agency]]
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:87 [[Partnership Income: Allocation]]
  
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:100 [[Disclosure and Compliance]]
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:88 [[Salaried Members Code]]
  
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:101 [[Disclosure on Death ]]
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:89 [[Partnerships CGT]]
  
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:102 [[Disclosure of Offshore Trusts]]
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:'''''<span style="font-size:106%">Entities</span>'''''
  
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:103 [[Criminal Law and Professional Conduct]]
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:90 [[Settlement, Bare Trust, and Associated Terminology]]
  
 +
:91  [[Estates of Deceased Persons: CGT]]
  
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:[[Appendix 1: Common Expressions]]
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:92  [[Estates of Deceased Persons: Income Tax]]
  
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:[[Appendix 2: Consideration, Arm's Length/Full Value]]
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:93  [[Foreign Entities]]
  
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:[[Appendix 3: Associated Operations: IHT]]
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:94  [[Hybrid Entities]]
  
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:[[Appendix 4: Construction of Deeming Provisions]]
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:'''''<span style="font-size:106%">Pensions & Employment Benefit Trusts</span>'''''
  
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:[[Appendix 5: What Do We Mean by "Real"?]]
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:95  [[Pension and Annuity Income]]
  
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:[[Appendix 6: Parliamentarians]]
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:96  [[Employer-Financed Retirement Benefits Scheme]]
  
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:[[Appendix 7: Visiting Forces]]
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:97  [[Pension IHT]]
  
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:[[Appendix 8: How to Improve Residence and Domicile Taxation]]
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:'''''<span style="font-size:106%">Topics affecting more than one tax</span>'''''
  
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:[[Appendix 9: Reform of Offshore Anti-avoidance Rules]]
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:98  [[Pre-2025 Protected Trust Income]]
  
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:[[Appendix 10: UK Arrival or Departure: Tax Checklist]]
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:99  [[Non-Resident Spouse]]
  
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:[[Appendix 11: Welsh Devolution]]
+
:100 [[Joint Accounts]]
  
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:[[Appendix 12: The Wisdom of Parliament]]
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:101 [[Foreign Currency Issues]]
  
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</div>
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:102 [[Cryptoassets]]
  
 +
:103 [[Unremittable Assets]]
  
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<big>'''New 2018/19 edition update in progress'''</big>
+
:104 [[ATED and SDLT]]
  
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The new 2018/19 edition of the book has gone to the printers, and should be available at the end of April.
+
:105 [[Who is the Settlor?]]
  
−
Work is now underway to update the online text to the text of the 2018/19 edition of the book. While this work is in progress, chapters which have/have not been updated will be clearly marked.
+
:106 [[Multiple Settlors]]
  
−
To order copies of the new edition, and online licences for 2018/19 [mailto:[email protected]?Subject=TFD%20enquiry email the publishers] or [http://khpplc.co.uk/ go to the publishers' website].
+
:107 [[Statutory Tax Indemnities]]
  
−
There is a special arrangement for holders of licences for the 2017/18 edition.  The useful life of the licence was cut short this year, because the new Finance Bill timetable brought this year's Finance Bill forward from July to March.  Accordingly holders of 2017/18 licences qualify for a discount when purchasing licences for the 2018/19 edition of TFD online.  The discount is 50% of the cost of the 2017/18 licences.
+
:108 [[Situs of Assets for IHT]]
  
−
Once the updating to 2018/19 online edition is complete, holders of old (2017/18) licences will still have online access to the 2017/18 text of TFD, until the end of August. But they will not have access to the 2018/19 edition.  For that you will need a new 2018/19 licence.
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:109 [[Situs of Assets for CGT]]
  
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<big>'''How to login'''</big>
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:110 [[Control Connected Close and Related Expressions]]
  
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Most of this site requires you [[Special:Userlogin|to login]].  To obtain a login licence:
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:111 [[Participation, % Investment & Material Interest Tests]]
 +
 
 +
:112 [[Permanent Establishment]]
 +
 
 +
:'''''<span style="font-size:106%">Double Taxation Agreements: IT/CGT</span>'''''
 +
 
 +
:113 [[Double Taxation Arrangements: Introduction]]
 +
 
 +
:114 [[DTA Anti-abuse Rules]]
 +
 
 +
:115 [[Third Party Relief/Savings Clause]]
 +
 
 +
:116 [[Limitation on Benefits]]
 +
 
 +
:117 [[Credit for Foreign Tax]]
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 +
:118 [[Non-discrimination]]
 +
 
 +
:119 [[Mutual Agreement Procedure]]
 +
 
 +
:'''''<span style="font-size:106%">Double Taxation Agreements: IHT</span>'''''
 +
 
 +
:120 [[IHT Double Taxation Treaties: Introduction]]
 +
 
 +
:121 [[IHT DTAs: India, Pakistan, Italy, France]]
 +
 
 +
:122 [[IHT DTA: South Africa]]
 +
 
 +
:123 [[IHT DTA: USA]]
 +
 
 +
:124 [[IHT DTA: Netherlands]]
 +
 
 +
:125 [[IHT DTA: Switzerland]]
 +
 
 +
:126 [[Credit for Foreign IHT]]
 +
 
 +
:'''''<span style="font-size:106%">Administration</span>'''''
 +
 
 +
:127 [[Reporting and Compliance]]
 +
 
 +
:128 [[Tax Return Filing Position]]
 +
 
 +
:129 [[Claims]]
 +
 
 +
:130 [[Collection of IT/CGT from UK Representatives]]
 +
 
 +
:131 [[Reporting and Compliance: IHT]]
 +
 
 +
:132 [[Penalties]]
 +
 
 +
:133 [[Failure to Prevent Tax Evasion]]
 +
 
 +
:134 [[Reporting Offshore Trusts]]
 +
 
 +
:135 [[International Movement of Capital: Reports]]
 +
 
 +
:'''''<span style="font-size:106%">CRS & Money Laundering</span>'''''
 +
 
 +
:136 [[Common Reporting Standard]]
 +
 
 +
:137 [[Trust Registration (TRS)]]
 +
 
 +
:138 [[Customer Due Diligence]]
 +
 
 +
:139 [[Money Laundering: POCA]]
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 +
 
 +
 
 +
:'''<big>Appendices</big>'''
 +
 
 +
:'''''<span style="font-size:106%">Words & Concepts</span>'''''
 +
 
 +
:[[Appendix 1 Words of Dispute]]
 +
 
 +
:[[Appendix 2 Common Legal Expressions]]
 +
 
 +
:[[Appendix 3 Family Terminology]]
 +
 
 +
:[[Appendix 4 Share/Security Terminology]]
 +
 
 +
:[[Appendix 5 Consideration, Arm's Length, Full Value]]
 +
 
 +
:[[Appendix 6 Commercial/View to Profit]]
 +
 
 +
:[[Appendix 7 Beneficial Ownership/Entitlement]]
 +
 
 +
: [[Appendix 8 Domicile]]
 +
 
 +
:'''''<span style="font-size:106%">Statutory Construction</span>'''''
 +
 
 +
:[[Appendix 9 Purposive Construction]]
 +
 
 +
:[[Appendix 10 Substance and Reality]]
 +
 
 +
:[[Appendix 11 Deeming Provisions]]
 +
 
 +
:'''''<span style="font-size:106%">Special Taxpayers</span>'''''
 +
 
 +
:[[Appendix 12 Parliamentarians]]
 +
 
 +
:[[Appendix 13 Visiting Forces]]
 +
 
 +
:[[Appendix 14 Diplomats]]
 +
 
 +
:[[Appendix 15 Sovereign Immunity]]
 +
 
 +
:[[Appendix 16 Students and Teachers]]
 +
 
 +
:[[Appendix 17 Continental Shelf]]
 +
 
 +
:'''''<span style="font-size:106%">Tax Reform</span>'''''
 +
 
 +
:[[Appendix 18 How to Improve Private Client Taxation]]
 +
 
 +
:[[Appendix 19 Reform of Offshore Anti-Avoidance Law]]
 +
 
 +
:[[Appendix 20 Citizenship-based Taxation]]
 +
 
 +
:[[Appendix 21 The Wisdom of Parliament]]
 +
 
 +
 
 +
 
 +
</div>
 +
 
 +
 
 +
<big>'''2025/26 edition'''</big>
 +
 
 +
The 2025/26 edition of ''Kessler on Private Client Taxation'' is available online and will be published in paper in August.  The online version is the better choice as it has been updated since the paper version went to print and will continue to be updated during the year.
 +
 
 +
To access PCT online, you will need an online licence. To obtain this, go to
 +
[https://www.khpplc.co.uk/ the publishers website] or email [mailto:[email protected]?Subject=TFD%20online [email protected]] Licences for previous editions are not valid for the current edition.
 +
 
 +
If you are an academic, student or other non-tax practitioner who wants access for research purposes, [mailto:[email protected]?Subject=TFD%20online contact James Kessler]
 +
 
 +
<big>'''How to login'''</big>
  
−
:* Every copy of the printed book has a 3 week trial licence (see inside back cover of volume 1)
+
Most of this site requires you [[Special:Userlogin|to login]]. You may purchase a single or multiple user licence:  To obtain these [mailto:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
  
−
:*  You may purchase a single or multiple user licence:  To obtain these [mailto:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
+
Without logging in, you can access:
  
−
:*  Without logging in, you can access: chap 1 [[Foreign Domicile: Tax Policy]]; chap 2 [[Tax Avoidance]].
+
[[Introduction]]<br/>Chapter 1 [[Mobile Individuals: Tax Policy]]<br/>Chapter 2 [[Tax Avoidance]]
  
 
You enter this site once you have registered and [[Special:Userlogin| logged in]] by clicking on the index on the left, or you can search the text.
 
You enter this site once you have registered and [[Special:Userlogin| logged in]] by clicking on the index on the left, or you can search the text.
  
−
You need to register with the password for the current edition. Registration for an earlier edition is not valid.
+
You need to register for the current edition. Registration for an earlier edition is no longer valid.
  
 
<big>'''Comments please'''</big>
 
<big>'''Comments please'''</big>
  
−
Users can also [[contribute to the text]] and if you can add anything extra which is worth saying, or spot anything that needs to be corrected, please do!. A copy of the next edition of the book will be given to the user who makes the most edits.  User contributions are reviewed by [http://www.taxchambers.com/barrister/maryashley/ Mary Ashley].
+
Users can also [[contribute to the text]] and if you can add anything, or spot anything that needs to be corrected, please do!  A copy of the next edition of the book will be given to the user who makes the most edits.  User contributions are reviewed by [https://www.taxchambers.com/team/rebecca-sheldon/ Rebecca Sheldon]. PCT online is a [http://en.wikipedia.org/wiki/Wiki Wiki] on the lines of [http://en.wikipedia.org Wikipedia], but only registered users can edit the text.
  
 
<big>'''If you want further advice'''</big>
 
<big>'''If you want further advice'''</big>
  
−
If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler QC to advise.  See [[How to instruct James Kessler QC]].
+
If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler KC or other members of his chambers to advise.  See [[How to instruct James Kessler KC]].
  
−
<big>'''Archive editions'''</big>
+
<big>'''Old editions archive'''</big>
  
−
There are [[archive editions]] for years since 2003/04.  These will occasionally be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.
+
There are [[archive editions]] for years since 2003/04.  These will be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.  
  
 
<big>'''Contact '''</big>
 
<big>'''Contact '''</big>
Line 290: Line 432:
 
If you have technical problems, or problems logging in, [mailto:[email protected]?Subject=TFD%20Technical%20query click here]
 
If you have technical problems, or problems logging in, [mailto:[email protected]?Subject=TFD%20Technical%20query click here]
  
−
To contact James Kessler QC [mailto:kessler@kessler.co.uk?Subject=TFD%20online click here]
+
To contact James Kessler KC [mailto:jkessler@15oldsquare.co.uk?Subject=TFD%20online click here]
  
−
To contact Mary Ashley, who reviews online contributions, [mailto:MaryAshley@15oldsquare.co.uk?Subject=TFD%20contact%20moderator%20request click here]
+
To contact Rebecca Sheldon, who reviews online contributions, [mailto:RebeccaSheldon@15oldsquare.co.uk?Subject=TFD%20contact%20moderator%20request click here]
  
 
For multiple user licences, or to install on a firm's intranet, [mailto:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
 
For multiple user licences, or to install on a firm's intranet, [mailto:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
  
−
<big>'''Technical notes'''</big>
+
<big>'''Resource Archive'''</big>  
−
 
+
−
TFD online is in technical terms a [http://en.wikipedia.org/wiki/Wiki Wiki] on the lines of [http://en.wikipedia.org Wikipedia], but only registered users can edit the text.
+
  
−
Site hosting and management by [http://www.highwiredesign.com: Highwire] </big>
+
To access material referenced in PCT, click here: [[PCT Resource Archive]]

Latest revision as of 13:12, 7 January 2026

This site is the successor to James Kessler'sTaxation of Non-Residents and Foreign Domiciliaries. The reforms of the FA 2025, which one might summarise as the abolition of domicile, have required a new title. But the approach of this work is unaltered. It seeks to provide as much information as possible about the UK taxation of individuals and trusts, the broad topic known as private client tax. Discussion includes:

  1. Income Tax, CGT and IHT on individuals and trusts
  2. The territorial limits of UK tax (now based on residence, situs and source)
  3. Other topics arising in this context, including tax avoidance, disclosure and compliance

This is a wide set of subjects, but in taxation, as in life, everything is connected.

Contents

Update

Introduction
Dedication
Mobile Individuals Policy & Avoidance
1 Mobile Individuals: Tax Policy
2 Tax Avoidance
3 Targeted Anti-Avoidance Rules (TAARs)
Residence
4 Residence of Individuals
5 Residence of Trustees
6 Residence of Companies
7 Treaty-Residence
8 Split Years
9 Temporary Non-residence
10 Exit Taxes
11 UK Arrival or Departure: Tax Checklist
Income Tax: Principles
12 Income and its Categorisation
13 Source/Territorial Principles
14 Income Recognition: Receive/Entitled/Arise/Paid
FIG Relief: TRF & Former Remittance Basis
15 FIG Relief & Overseas Workday Relief
16 Temporary Repatriation Facility
17 The Remittance Basis
18 Remittance Reliefs
19 Mixed Funds
Income by Category
20 Trading Income
20A Cessations and Trading Stock
21 Trading in Land
22 Performers
23 Property Income
24 Deduction of interest from Property Income
25 Interest Income
26 Exempt Interest of Non-Residents
27 Accrued Income Profits
28 Deeply Discounted Securities
29 Dividend Income
30 Corporation Tax on Company Distributions
31 Annual Payments
32 Intellectual Property Income
33 Misc Sweep-Up Income
Employment Income
34 Employment Income
35 Travel Expenses: Employment Income
36 PAYE
37 Disguised Remuneration/Trading Income
38 Employment Income: DT Relief
39 Benefit in Kind: Family Home and Chattels
40 Loans from Companies
IT: General
41 Discretionary Trusts: Income Tax
42 IIP Trusts: Income Tax
43 Rates of Income Tax/CGT
44 Personal Allowances
45 Non-Resident Income Tax Relief
46 National Insurance Contributions
IT Avoidance Codes
47 Settlor-interested Trust Code
48 Transfer of Assets Abroad: Introduction
49 Transfer of Assets Abroad: Transferors
50 Transfer of Assets Abroad: Benefits
51 Transfer of Assets Abroad: Relief from Overlapping Charges
52 Transfer of Assets Abroad: Motive Defence
53 Profit Fragmentation
54 Transfer of Income Streams
55 Transactions in Securities
Capital Gains Tax
56 Chargeable Gains
57 UK Property Held by Non-Residents
58 Reorganisations
59 Residential Property: CGT
60 Gains of Non-Resident Settlor-Interested Trusts: s.86
61 Capital Payments from Non-Resident Trusts: s.87 Code
62 Borrowing by Non-Resident Trust: Sch 4B
63 Sub-Funds
64 Gains of Non-Resident Companies
65 Capital Losses
Funds
66 Funds: Terms & Concepts
67 Offshore Income Gains
68 Income from Offshore Funds
69 Unit Trusts & Transparent Funds
70 Life Policies and Contracts
71 Intermediated Securities
Investment Management
72 Investment Manager Exemptions
73 Carried Interest/Investment Management Fees: Introduction
74 Carried Interest
75 Investment Management Fees
Inheritance Tax
76 IHT Terms and Concepts
77 Excluded Property: Definition
78 Excluded Property Exemptions
79 Wills and IOVs
80 Reservation of Benefit
81 Inter-Trust Transfers: IHT
82 IHT Treatment of Debts
83 IHT Close-Company Code
84 IHT Residential-Property Code
85 Pre-Owned Assets
Partnerships
86 Partnerships
87 Partnership Income: Allocation
88 Salaried Members Code
89 Partnerships CGT
Entities
90 Settlement, Bare Trust, and Associated Terminology
91 Estates of Deceased Persons: CGT
92 Estates of Deceased Persons: Income Tax
93 Foreign Entities
94 Hybrid Entities
Pensions & Employment Benefit Trusts
95 Pension and Annuity Income
96 Employer-Financed Retirement Benefits Scheme
97 Pension IHT
Topics affecting more than one tax
98 Pre-2025 Protected Trust Income
99 Non-Resident Spouse
100 Joint Accounts
101 Foreign Currency Issues
102 Cryptoassets
103 Unremittable Assets
104 ATED and SDLT
105 Who is the Settlor?
106 Multiple Settlors
107 Statutory Tax Indemnities
108 Situs of Assets for IHT
109 Situs of Assets for CGT
110 Control Connected Close and Related Expressions
111 Participation, % Investment & Material Interest Tests
112 Permanent Establishment
Double Taxation Agreements: IT/CGT
113 Double Taxation Arrangements: Introduction
114 DTA Anti-abuse Rules
115 Third Party Relief/Savings Clause
116 Limitation on Benefits
117 Credit for Foreign Tax
118 Non-discrimination
119 Mutual Agreement Procedure
Double Taxation Agreements: IHT
120 IHT Double Taxation Treaties: Introduction
121 IHT DTAs: India, Pakistan, Italy, France
122 IHT DTA: South Africa
123 IHT DTA: USA
124 IHT DTA: Netherlands
125 IHT DTA: Switzerland
126 Credit for Foreign IHT
Administration
127 Reporting and Compliance
128 Tax Return Filing Position
129 Claims
130 Collection of IT/CGT from UK Representatives
131 Reporting and Compliance: IHT
132 Penalties
133 Failure to Prevent Tax Evasion
134 Reporting Offshore Trusts
135 International Movement of Capital: Reports
CRS & Money Laundering
136 Common Reporting Standard
137 Trust Registration (TRS)
138 Customer Due Diligence
139 Money Laundering: POCA


Appendices
Words & Concepts
Appendix 1 Words of Dispute
Appendix 2 Common Legal Expressions
Appendix 3 Family Terminology
Appendix 4 Share/Security Terminology
Appendix 5 Consideration, Arm's Length, Full Value
Appendix 6 Commercial/View to Profit
Appendix 7 Beneficial Ownership/Entitlement
Appendix 8 Domicile
Statutory Construction
Appendix 9 Purposive Construction
Appendix 10 Substance and Reality
Appendix 11 Deeming Provisions
Special Taxpayers
Appendix 12 Parliamentarians
Appendix 13 Visiting Forces
Appendix 14 Diplomats
Appendix 15 Sovereign Immunity
Appendix 16 Students and Teachers
Appendix 17 Continental Shelf
Tax Reform
Appendix 18 How to Improve Private Client Taxation
Appendix 19 Reform of Offshore Anti-Avoidance Law
Appendix 20 Citizenship-based Taxation
Appendix 21 The Wisdom of Parliament



2025/26 edition

The 2025/26 edition of Kessler on Private Client Taxation is available online and will be published in paper in August. The online version is the better choice as it has been updated since the paper version went to print and will continue to be updated during the year.

To access PCT online, you will need an online licence. To obtain this, go to the publishers website or email [email protected] Licences for previous editions are not valid for the current edition.

If you are an academic, student or other non-tax practitioner who wants access for research purposes, contact James Kessler

How to login

Most of this site requires you to login. You may purchase a single or multiple user licence: To obtain these contact the publishers.

Without logging in, you can access:

Introduction
Chapter 1 Mobile Individuals: Tax Policy
Chapter 2 Tax Avoidance

You enter this site once you have registered and logged in by clicking on the index on the left, or you can search the text.

You need to register for the current edition. Registration for an earlier edition is no longer valid.

Comments please

Users can also contribute to the text and if you can add anything, or spot anything that needs to be corrected, please do! A copy of the next edition of the book will be given to the user who makes the most edits. User contributions are reviewed by Rebecca Sheldon. PCT online is a Wiki on the lines of Wikipedia, but only registered users can edit the text.

If you want further advice

If you do not find the answer to your question here, or if you want advice on which you can legally rely, you may instruct James Kessler KC or other members of his chambers to advise. See How to instruct James Kessler KC.

Old editions archive

There are archive editions for years since 2003/04. These will be useful to investigate the tax position in earlier years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.

Contact

If you have technical problems, or problems logging in, click here

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To contact Rebecca Sheldon, who reviews online contributions, click here

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Resource Archive

To access material referenced in PCT, click here: PCT Resource Archive

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