Meaning of "Not Domiciled" on tax return forms?

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missey1977

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Hello,
am completing a Form 12 for the first time. I am a British Citizen, born in England, and living here in Ireland for the past 11 years.

I read the guide-pay-file for returns, and whilst it is explicit on the terms for Non-Resident and Not Ordinarily Resident. It doesn't say much about 'Not Domiciled' other than "In most cases a persons domicile will be the country they were born".

So does this mean i should tick the "Not Domiciled" box? Does it make much of a difference anyway?

Thanks for any help. Am only on page 3 of my return and already having issues!
 
Domicile is one of those nebulous concepts which tax books don't tend to explain very well. Broadly, your domicile is that of the country where you were born. However, if you completely and irrevocably sever ALL links with that country and move elsewhere, you can assume a new domicile. In your own case, as Ireland and the UK have tax agreements with each other it probably wouldn't make a difference to your tax liability here ie the countries have rules setting out how earnings originating in one country are taxable in the other country. Similarly, if your earnings arise solely based on employment here, there are no attractive tax avoidance possibilities available to you due to the length of time you've been residing here.

Your domicile would possibly be important if, say, you happened to have earnings in a country outside of the EU. Depending on whether Ireland had a tax agreement with that other country, it might conceivably be possible to not pay any tax in Ireland on such earnings.

My guess- and I emphasise that it's a guess- is that you can tick the box to indicate that you are a 'non-dom' but it will have no real effect on your tax liability here.
 
If you are domiciled here, resident and ordinarily resident you are liable for tax on your world-wide income and gains.
If you are Irish resident but non-domiciled, you are taxed on Irish income, plus foreign income if brought into Ireland.
 
There is no real definition of domicile. If you have left the UK with the intention of never returning and done such things as married here, have kids here and bought your grave plot here then you MAY have changed domicile. I'd hit the non domicile box until another few years.
 
Am still thinking of burying myself back in the UK, so maybe my hearts still there! Will stay non-dom for now.

I dont have any non Irish income, so it shouldn't make any difference.

Thanks all
 
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