IHTM47041 - Long-term UK residence: Spousal domicile elections before 6 April 2025 鈥� transitional rules
Domicile elections made before 30 October 2024 will remain in place, with the spouse making the election treated as deemed听UK domiciled until 5 April 2025 and then long-term UK resident from 6 April 2025 until 4 consecutive tax years of non-residence have elapsed.听听
It will also be possible to make a domicile election on or after 30 October 2024 and before 6 April 2025, with the spouse making the election treated as deemed听UK domiciled until 5 April 2025 and then long-term UK resident from 6 April 2025 until 10 consecutive tax years of non-residence have elapsed.听听听
After 6 April 2025, it will still be possible to make a domicile election which covers a period prior to 6 April 2025. In this case, the spouse making the election will be treated as deemed听UK domiciled until 5 April 2025 and then long-term resident from 6 April 2025 until 10 consecutive tax years of non-residence have elapsed.听
Once an election has ended due to the requisite period of non-UK residence, the electing spouse鈥檚 IHT position going forward will depend on whether they satisfy the long-term听UK听residence test听under IHTA84/S6A听(IHTM47000).听
Examples听
Example 1听
Anastasia makes a domicile spousal election on 1 October听2024听and she will be treated as deemed听domiciled until 5 April 2025 and then long-term UK resident听from 6 April 2025 until 4 successive听tax years of non-UK residence have elapsed.听
Anastasia leaves the UK in December 2028 and does not return. She will cease to be a long-term UK resident after听5 April 2033.听
Example 2听
Alberto has made a听domicile听spousal election on 1 December 2024听and he will be treated as deemed听domiciled until 5 April 2025 and then long-term UK resident from 6 April 2025 until 10 successive tax years of non-UK residence have elapsed.听
Alberto leaves the UK in February 2026听and his first year of听non-residence is 2026-27. Alberto will continue to be a long-term UK resident until 10 successive years of non-UK residence听have elapsed. If Alberto does not return to the UK, he will achieve this at the end of the tax year 2035-36.听
Example 3听
Nicky听makes a domicile spousal election听on听20 May听2025听to be effective from听5 November 2024. She will be treated as UK domiciled from 5 November 2025 until 5 April 2025 and then treated as a long-term UK resident听from 6 April 2025听onwards until she achieves 10 consecutive tax years of non-UK residence.听
Nicky is non-UK resident when she makes the election. Therefore, her first tax year of non-UK residence听is 2025-26.听
If Nicky does not reside听in the UK听at any point,听she will achieve 10 successive听tax years of non-UK residence by听the end of the tax听year 2034-35.