From 6th April 2025, the UK abandoned the traditional concept of domicile for inheritance tax (IHT) purposes. Instead, it hinges on whether someone is a long-term UK resident. Under this new regime, an individual is deemed a long-term UK resident if they have been tax-resident in the UK for at least 10 of the preceding 20 tax years.

Until the 6th April 2025, the UK’s taxation of individuals who were non-doms was based on the concept of domicile, a legal term under English law referring to a person’s long-term permanent home. Non-doms could live in the UK while enjoying favourable tax treatment under the “remittance basis”. This treatment typically lasted for up to 15 years.

Employment Law Changes to Limits, Caps and Guidelines that You Need to Know this April

Choosing the right trust depends on its desired purpose, the level of control you’ll need, and your beneficiaries, tax treatment, and asset protection needs. Here, we’ll compare the main types of trusts so you can decide which is right for you.