Domicile

Domicile is a legal concept referring to the country that a person treats as their permanent home and intends to reside in indefinitely. It differs from residency in that a person can be resident in one country while remaining domiciled in another. In the UK and Commonwealth jurisdictions, domicile is particularly important for determining the application of inheritance tax, as individuals domiciled in the UK are subject to UK inheritance tax on their worldwide assets. Domicile is notoriously difficult to change and requires clear evidence of abandonment of the prior domicile and acquisition of a new one.