The 1 to 10 of non-dom immigration

In celebration of my 20-month-old daughter who has learnt to count from one to ten (eleven, actually),  I wanted to write a post to touch on the significance of these numbers in relation to non-doms and UK immigration.  It also gives me an opportunity to clarify that an individual might be eligible to apply for Indefinite Leave to Remain ("ILR") (i.e. permanent residence) in the UK after being UK resident for tax purposes for four tax years.  (For further details on the new non-dom regime proposed by the 2024 Budget, please see this article.) 

1 to 10

1. One year is the time an applicant has to wait between obtaining ILR / Settled Status and applying for British citizenship by naturalisation under s6(1) British Nationality Act 1981 ("BNA 1981").
2. ILR will lapse if an individual has spent more than two consecutive years outside of the UK.
3. The Home Office will look at an applicant's absences from the UK in the three preceding years prior to their application for British citizenship by naturalisation under s6(2) BNA 1981 (for applicants who are married to a British citizen).
4. See the new four-year FIG regime.
5. For most UK immigration routes, an applicant must have held the relevant visa for at least five years before they become eligible to apply for ILR.
6. It usually takes six years for an individual to be become eligible for British citizenship by naturalisation under s6(1) BNA 1981 (i.e. five years to obtain ILR plus one more year).
7. If a non-domiciled individual has been UK resident for tax purposes for at least seven of the previous nine tax years, then they have to pay the £30,000 remittance basis charge. 
8. Article 8 of the European Convention on Human Rights (the right to respect for private and family life) might be engaged, especially for Family visa applications.
9. See point 7 above.
10. It is proposed that individuals who have been tax resident in the UK for ten years will be subject to UK inheritance tax on their worldwide assets.  Individuals who have been resident in the UK for ten years might be eligible to apply for ILR under the Long Residence route.  

4 or 5

As discussed in this post, “residence” for UK tax purposes is not the same as “residence” for UK immigration purposes.  Broadly speaking, under one of the Statutory Residence Test ("SRT") sub-tests, in some cases an individual may spend up to 182 days (midnights) in the UK in a given tax year (i.e. 6 April to the following 5 April) without becoming UK resident for tax purposes.   To satisfy the continuous residence requirements for ILR, an individual cannot have more than 180 days (whole days) of absences in total in any 12-month period on a rolling basis.  Therefore, it is entirely possible that an individual might become eligible to apply for ILR because they have been living in the UK for five years with an appropriate visa, whilst only being UK resident for tax purposes for four tax years under the SRT.  

How can we help?

Burges Salmon's specialists have substantial experience in immigration, tax, trusts, and estate planning for international clients.  If you wish to discuss any of the matters raised in this article, please do get in touch with Suzanna Harvey, Myra Leung or your usual contact within the team.

For those who would otherwise have been able to claim the remittance basis the 4-year FIG regime will generally be significantly less attractive but it does have a few positives.

https://www.burges-salmon.com/news-and-insight/legal-updates/the-budget-2024-the-new-regime-for-non-doms-and-their-structures