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<big>This website 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 the book [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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<big>'''Contents'''</big>
 
<big>'''Contents'''</big>
  
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[http://www.foreigndomiciliaries.co.uk/index.php/Updates Updates]  
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[[Update]]
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:[[Introduction]]
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:[[Dedication]]
  
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[[Introduction]]
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:'''''<span style="font-size:106%"> Mobile Individuals Policy & Avoidance</span>'''''
  
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:1  [[Foreign Domicile: Tax Policy and Reforms]]
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:1  [[Mobile Individuals: Tax Policy]]
  
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:2  [[Wake Up and Smell the Coffee: Public Debate on Tax Avoidance]]
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:2  [[Tax Avoidance]]
  
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:3  [[Domicile]]  
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:3  [[Targeted Anti-Avoidance Rules (TAARs)]]
  
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:3A  [[Deemed Domicile from 2017]]
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:'''''<span style="font-size:106%">Residence</span>'''''
  
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:4 [[Residence of Individuals]]
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:4   [[Residence of Individuals]]
  
 
:5  [[Residence of Trustees]]
 
:5  [[Residence of Trustees]]
  
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:6  [[Treaty-Residence]]
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:6  [[Residence of Companies]]
  
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:7  [[Year of Arrival and Departure]]
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:7  [[Treaty-Residence]]
  
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:8  [[Exit Taxes]]
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:8  [[Split Years]]
  
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:9  [[Temporary Non-residence: Post-2013 Departures]]
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:9  [[Temporary Non-residence]]
  
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:9A [[Temporary Non-residence: Pre-2013 Departures]]
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:10 [[Exit Taxes]]
  
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:10 [[Remittance Basis]]
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:11 [[UK Arrival or Departure: Tax Checklist]]
  
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:11  [[The Meaning of Remittance]]
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:'''''<span style="font-size:106%">Income Tax: Principles</span>'''''
  
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:12  [[Remittance Reliefs]]
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:12  [[Income and its Categorisation]]
  
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:13  [[Mixed Funds]]
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:13  [[Source/Territorial Principles]]
  
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:14  [[Income Sources and Categories]]
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:14  [[Income Recognition: Receive/Entitled/Arise/Paid]]
  
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:15  [[Trading Income]]
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:'''''<span style="font-size:106%">FIG Relief: TRF & Former Remittance Basis</span>'''''
  
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:16 [[Property Income]]
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:15 [[FIG Relief & Overseas Workday Relief]]
  
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:17 [[Deduction of interest in computing property income]]
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:16 [[Temporary Repatriation Facility]]
  
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:18 [[Interest Income]]
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:17 [[The Remittance Basis]]
  
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:19 [[Exempt Interest of Non-Residents]]
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:18 [[Remittance Reliefs]]
  
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:20 [[Dividend Income]]
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:19 [[Mixed Funds]]
  
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:21  [[Royalty Income]]
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:'''''<span style="font-size:106%">Income by Category</span>'''''
  
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:22 [[Employment Income]]
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:20 [[Trading Income]]
  
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:23  [[PAYE]]
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:20A [[Cessations and Trading Stock]]
  
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:24 [[Employment Income: DT Relief]]
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:21 [[Trading in Land]]
  
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:25 [[Pension and Annuity Income]]
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:22 [[Performers]]
  
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:26 [[Discretionary Trusts: Income Tax]]
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:23 [[Property Income]]
  
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:27 [[IIP Trusts: Income Tax]]
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:24 [[Deduction of interest from Property Income]]
  
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:28 [[Settlor-interested Trusts]]
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:25 [[Interest Income]]
  
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:29 [[Transfer of Assets Abroad: Introduction]]
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:26 [[Exempt Interest of Non-Residents]]
  
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:30 [[Transfer of Assets Abroad: Transferors]]
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:27 [[Accrued Income Profits]]
  
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:31 [[Transfer of Assets Abroad: Non-transferors]]
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:28 [[Deeply Discounted Securities]]
  
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:32 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
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:29 [[Dividend Income]]
  
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:33 [[Transfer of Assets Abroad: Motive Defence]]
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:30 [[Corporation Tax on Company Distributions]]
  
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:34 [[Life Policies and Contracts]]
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:31 [[Annual Payments]]
  
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:35 [[Offshore Funds - Definition]]
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:32 [[Intellectual Property Income]]
  
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:36 [[Offshore Income Gains]]
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:33 [[Misc Sweep-Up Income]]
  
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:37  [[Income from Offshore Funds]]
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:'''''<span style="font-size:106%">Employment Income</span>'''''
  
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:38 [[Accrued Income Profits]]
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:34 [[Employment Income]]
  
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:39 [[Deeply Discounted Securities]]
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:35 [[Travel Expenses: Employment Income]]
  
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:40 [[Unit Trusts]]
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:36 [[PAYE]]
  
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:41 [[Intermediated Securities]]
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:37 [[Disguised Remuneration/Trading Income]]
  
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:42 [[Partnerships]]
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:38 [[Employment Income: DT Relief]]
  
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:43 [[Non-Residents Income Tax Relief]]
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:39 [[Benefit in Kind: Family Home and Chattels]]
  
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:44 [[Collection of Tax from UK Representatives]]
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:40 [[Loans from Companies]]
  
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:45  [[Investment Manager Exemptions]]
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:'''''<span style="font-size:106%">IT: General</span>'''''
  
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:46 [[Loans from Non-Resident Companies]]
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:41 [[Discretionary Trusts: Income Tax]]
  
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:47 [[Rates of Tax]]
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:42 [[IIP Trusts: Income Tax]]
  
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:48 [[Personal Allowances and Annual Exemptions]]
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:43 [[Rates of Income Tax/CGT]]
  
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:49 [[National Insurance Contributions]]
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:44 [[Personal Allowances]]
  
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:50 [[Capital Gains of UK Residents]]
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:45 [[Non-Resident Income Tax Relief]]
  
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:51 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
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:46 [[National Insurance Contributions]]
  
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:52  [[Capital Payments from Non-Resident Trusts: s.87]]
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:'''''<span style="font-size:106%">IT Avoidance Codes</span>'''''
  
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:53 [[Borrowing by Non-resident Trust: Sch 4B]]
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:47 [[Settlor-interested Trust Code]]
  
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:54 [[Gains of Non-Resident Companies]]
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:48 [[Transfer of Assets Abroad: Introduction]]
  
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:55 [[Capital Losses]]
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:49 [[Transfer of Assets Abroad: Transferors]]
  
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:56 [[Foreign Currency Issues]]
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:50 [[Transfer of Assets Abroad: Benefits]]
  
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:57 [[Unremitted Income: Exchange Control]]
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:51 [[Transfer of Assets Abroad: Relief from Overlapping Charges]]
  
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:58 [[Double Taxation Agreements: Introduction]]
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:52 [[Transfer of Assets Abroad: Motive Defence]]
  
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:59 [[Foreign Tax Credit Relief]]
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:53 [[Profit Fragmentation]]
  
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:60 [[EU Law and UK Taxation]]
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:54 [[Transfer of Income Streams]]
  
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:61 [[Deemed Domicile for IHT]]
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:55 [[Transactions in Securities]]
  
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:62  [[Excluded Property for IHT]]
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:'''''<span style="font-size:106%">Capital Gains Tax</span>'''''
  
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:63 [[Reservation of Benefit]]
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:56 [[Chargeable Gains]]
  
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:64 [[IHT Consequences of Transfers Between Trusts]]
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:57 [[UK Property Held by Non-Residents]]
  
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:65 [[IHT Deduction for Debts]]
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:58 [[Reorganisations]]
  
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:66 [[IHT Planning Before and After a Change of Domicile]]
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:59 [[Residential Property: CGT]]
  
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:67 [[IHT on Death: Wills and IOVs]]
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:60 [[Gains of Non-Resident Settlor-Interested Trusts: s.86]]
  
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:68 [[Double Inheritance Taxation: Introduction]]
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:61 [[Capital Payments from Non-Resident Trusts: s.87 Code]]
  
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:69 [[IHT DTTs India, Pakistan, Italy, France]]
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:62 [[Borrowing by Non-Resident Trust: Sch 4B]]
  
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:70 [[IHT DTT USA]]
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:63 [[Sub-Funds]]
  
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:71 [[IHT DTT Switzerland]]
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:64 [[Gains of Non-Resident Companies]]
  
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:72 [[Foreign IHT Credit Relief]]
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:65 [[Capital Losses]]
  
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:73  [[Marriage with Foreign Domiciliary or Non-Resident]]
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:'''''<span style="font-size:106%">Funds</span>'''''
  
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:74 [[Residential Property of Non-Residents: NRCGT]]
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:66 [[Funds: Terms & Concepts]]
  
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:75 [[The Family Home and its Chattels: Benefit in Kind Charges]]
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:67 [[Offshore Income Gains]]
  
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:76 [[Corporate Residential Property]]
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:68 [[Income from Offshore Funds]]
  
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:77 [[Pre-Owned Assets]]
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:69 [[Unit Trusts & Transparent Funds]]
  
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:78 [[Joint Accounts]]
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:70 [[Life Policies and Contracts]]
  
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:79 [[Estates of Deceased Persons: CGT]]
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:71 [[Intermediated Securities]]
  
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:80  [[Estates of Deceased Persons: Income Tax]]
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:'''''<span style="font-size:106%">Investment Management</span>'''''
  
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:81 [[Who is the Settlor?]]
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:72 [[Investment Manager Exemptions]]
  
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:82 [[Trusts with Two or More Settlors]]
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:73 [[Carried Interest/Investment Management Fees: Introduction]]
  
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:83 [[Situs of Assets for IHT]]
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:74 [[Carried Interest]]
  
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:84 [[Situs of Assets for CGT]]
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:75 [[Investment Management Fees]]
  
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:85  [[Foreign Entities]]
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:'''''<span style="font-size:106%">Inheritance Tax</span>'''''
  
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:86 [[Control Connected Close and Related Expressions]]
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:76 [[IHT Terms and Concepts]]
  
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:87 [[Permanent Establishment & Branch/Agency]]
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:77 [[Excluded Property: Definition]]
  
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:88 [[Disclosure and Compliance]]
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:78 [[Excluded Property Exemptions]]
  
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:89 [[Swiss Tax Agreement Introduction]]
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:79 [[Wills and IOVs]]
  
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:90 [[STA Clearance Facility]]
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:80 [[Reservation of Benefit]]
  
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:91 [[STA Withholding Tax]]
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:81 [[Inter-Trust Transfers: IHT]]
  
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:92 [[Disclosure of Information by Swiss Authorities]]
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:82 [[IHT Treatment of Debts]]
  
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:93 [[Criminal Law and Professional Conduct]]
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:83 [[IHT Close-Company Code]]
  
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:[[Appendix 1: Terminology]]
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:84  [[IHT Residential-Property Code]]
  
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:[[Appendix 2: Construction of Deeming Provisions]]
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:85  [[Pre-Owned Assets]]
  
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:[[Appendix 3: What Do We Mean by "Real"?]]
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:'''''<span style="font-size:106%">Partnerships</span>'''''
  
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:[[Appendix 4: Parliamentarians]]
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:86  [[Partnerships]]
  
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:[[Appendix 5: Visiting Forces]]
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:87  [[Partnership Income: Allocation]]
  
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:[[Appendix 6: Students]]
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:88  [[Salaried Members Code]]
  
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:[[Appendix 7: Entertainers and Sportspeople]]
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:89  [[Partnerships CGT]]
  
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:[[Appendix 8: How to Improve Residence and Domicile Taxation]]
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:'''''<span style="font-size:106%">Entities</span>'''''
  
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:[[Appendix 9: Reform of Non-Residence Anti- Avoidance Rules]]
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:90  [[Settlement, Bare Trust, and Associated Terminology]]
  
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:[[Appendix 10: Issues to Consider Before UK Arrival or Departure: Checklist]]
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:91  [[Estates of Deceased Persons: CGT]]
  
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:[[Appendix 11: Travel Expenses: Employment Income Deduction]]
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:92  [[Estates of Deceased Persons: Income Tax]]
  
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:93  [[Foreign Entities]]
  
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</div>
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:94  [[Hybrid Entities]]
  
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:'''''<span style="font-size:106%">Pensions & Employment Benefit Trusts</span>'''''
  
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<big>'''TFD 2016/17 edition out soon'''</big>
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:95  [[Pension and Annuity Income]]
  
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The new 2016/17 edition of "Taxation of Non-residents and Foreign Domiciliaries" will be published online on 1 September 2016. The text will be based on the Finance Bill as it then stands. The printed edition of the book, based on the Finance Act in its final form, will be published in October and at that time the online edition will be updated.
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:96  [[Employer-Financed Retirement Benefits Scheme]]
  
−
To maintain unbroken access to TFD online you will need a copy of the new edition with an online licence. To obtain these, go to the publishers online ordering [http://www.khpplc.co.uk/products/82/Taxation-of-Non-Residents-and-Foreign-Domiciliaries-15th-Online-Edition here (book)] and [http://www.khpplc.co.uk/products/82/Taxation-of-Non-Residents-and-Foreign-Domiciliaries-15th-Online-Edition here (licence)]
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:97  [[Pension IHT]]
  
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Online licences for the current edition will not be valid from 1 September 2015 when the new edition is published.
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:'''''<span style="font-size:106%">Topics affecting more than one tax</span>'''''
  
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:98  [[Pre-2025 Protected Trust Income]]
  
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<big>'''About TFD Online'''</big>
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:99  [[Non-Resident Spouse]]
  
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Most of this website requires you [[Special:Userlogin|to login]].  To obtain a login licence:
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:100 [[Joint Accounts]]
  
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- Every copy of the printed book has a 3 week trial licence (see inside back cover of volume 1)
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:101 [[Foreign Currency Issues]]
  
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- You may purchase a single user online licence (£99 + VAT with a copy of the book) or a multiple user licence: To obtain the book and online licence, go to [http://www.khpplc.co.uk/ the publishers online ordering] and search for ''Kessler''.  For multiple user licence [mailto:[email protected]?Subject=TFD%20contact%20publisher%20request%20multiple%20user%20licences contact the publishers].
+
:102 [[Cryptoassets]]
  
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3 chapters can be accessed without a login: chapters 1 and 2 (which concern policy issues of general interest) and 9A (on a transitional issue which is not set out in full in the printed book). 
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:103 [[Unremittable Assets]]
  
−
If you registered before the current edition was published in September 2015, you need to reregister with a password for the current edition. However, if you have not (yet) bought the book you may [[Special:Userlogin|register for a free one day trial]]. There is no charge for a one day trial, but if you find the site useful, and wish to express support or thanks, you are invited to [http://www.justgiving.com/jameskessler/ make a donation to the charity Water Aid].
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:104 [[ATED and SDLT]]
  
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You may enter this site once you have registered and [[Special:Userlogin| logged in]] by clicking on the index below, or you can search the text.
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:105 [[Who is the Settlor?]]
  
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Users can also [[contribute to the text and correct slips or errors]] and if you see anything that needs correcting or expanding, 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/oliver-marre/ Oliver Marre]. 
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:106 [[Multiple Settlors]]
  
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The initial data was the current edition of ''Taxation of Non-residents and Foreign Domiciliaries'' published 1 September 2015. 
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:107 [[Statutory Tax Indemnities]]
  
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There have been significant updates since the book went to print.  For the list [http://www.foreigndomiciliaries.co.uk/index.php/Updates see here].
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:108 [[Situs of Assets for IHT]]
  
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:109 [[Situs of Assets for CGT]]
  
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<big>'''If you want further advice'''</big>
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:110 [[Control Connected Close and Related Expressions]]
  
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If you do not find the answer to your question in TFD online, or if you want advice on which you can legally rely, you may instruct James Kessler QC to advise.  For further information see [[How to instruct James Kessler QC]].
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:111 [[Participation, % Investment & Material Interest Tests]]
  
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:112 [[Permanent Establishment]]
  
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<big>'''TFD archive editions'''</big>
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:'''''<span style="font-size:106%">Double Taxation Agreements: IT/CGT</span>'''''
  
−
There are [[archive editions]] for years since 2008/09.  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.
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:113 [[Double Taxation Arrangements: Introduction]]
  
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:114 [[DTA Anti-abuse Rules]]
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:115 [[Third Party Relief/Savings Clause]]
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:116 [[Limitation on Benefits]]
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:117 [[Credit for Foreign Tax]]
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:118 [[Non-discrimination]]
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:119 [[Mutual Agreement Procedure]]
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:'''''<span style="font-size:106%">Double Taxation Agreements: IHT</span>'''''
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:120 [[IHT Double Taxation Treaties: Introduction]]
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:121 [[IHT DTAs: India, Pakistan, Italy, France]]
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:122 [[IHT DTA: South Africa]]
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:123 [[IHT DTA: USA]]
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:124 [[IHT DTA: Netherlands]]
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:125 [[IHT DTA: Switzerland]]
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:126 [[Credit for Foreign IHT]]
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:'''''<span style="font-size:106%">Administration</span>'''''
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:127 [[Reporting and Compliance]]
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:128 [[Tax Return Filing Position]]
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:129 [[Claims]]
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:130 [[Collection of IT/CGT from UK Representatives]]
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:131 [[Reporting and Compliance: IHT]]
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:132 [[Penalties]]
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:133 [[Failure to Prevent Tax Evasion]]
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:134 [[Reporting Offshore Trusts]]
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:135 [[International Movement of Capital: Reports]]
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:'''''<span style="font-size:106%">CRS & Money Laundering</span>'''''
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:136 [[Common Reporting Standard]]
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:137 [[Trust Registration (TRS)]]
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:138 [[Customer Due Diligence]]
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:139 [[Money Laundering: POCA]]
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:'''<big>Appendices</big>'''
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:'''''<span style="font-size:106%">Words & Concepts</span>'''''
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:[[Appendix 1 Words of Dispute]]
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:[[Appendix 2 Common Legal Expressions]]
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:[[Appendix 3 Family Terminology]]
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:[[Appendix 4 Share/Security Terminology]]
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:[[Appendix 5 Consideration, Arm's Length, Full Value]]
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:[[Appendix 6 Commercial/View to Profit]]
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:[[Appendix 7 Beneficial Ownership/Entitlement]]
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: [[Appendix 8 Domicile]]
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:'''''<span style="font-size:106%">Statutory Construction</span>'''''
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:[[Appendix 9 Purposive Construction]]
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:[[Appendix 10 Substance and Reality]]
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:[[Appendix 11 Deeming Provisions]]
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:'''''<span style="font-size:106%">Special Taxpayers</span>'''''
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:[[Appendix 12 Parliamentarians]]
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:[[Appendix 13 Visiting Forces]]
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:[[Appendix 14 Diplomats]]
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:[[Appendix 15 Sovereign Immunity]]
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:[[Appendix 16 Students and Teachers]]
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:[[Appendix 17 Continental Shelf]]
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:'''''<span style="font-size:106%">Tax Reform</span>'''''
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:[[Appendix 18 How to Improve Private Client Taxation]]
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:[[Appendix 19 Reform of Offshore Anti-Avoidance Law]]
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:[[Appendix 20 Citizenship-based Taxation]]
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 +
:[[Appendix 21 The Wisdom of Parliament]]
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</div>
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 +
 +
<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>
 +
 +
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].
 +
 +
Without logging in, you can access:
 +
 +
[[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 need to register for the current edition. Registration for an earlier edition is no longer valid.
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 +
<big>'''Comments please'''</big>
 +
 +
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>
 +
 +
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>'''Old editions archive'''</big>
 +
 +
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>
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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 Oliver Marre, who reviews online contributions, [mailto:OliverMarre@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>'''Resource Archive'''</big>
  
−
<big>'''Technical notes'''</big>
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To access material referenced in PCT, click here: [[PCT Resource Archive]]
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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

To contact James Kessler KC click here

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

For multiple user licences, or to install on a firm's intranet, contact the publishers.

Resource Archive

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

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