A “non-dom” is someone who does not have a UK domicile. Your domicile is a state of mind and circumstances. It is not necessarily the same as your citizenship or nationality. Generally speaking, you take the domicile of your father at the time of your birth. This is known as a ‘domicile of origin’. This domicile of origin can stay with you all of your life or until such time as you change your domicile and establish a ‘domicile of choice’. A domicile of choice can only be established if you resolve to live in a country permanently, sever all ties to your domicile of origin and actually become resident in that country.
A person who has been resident in the UK in 17 out of the last 20 tax years may become deemed domiciled in the UK for UK inheritance tax purposes only. Exposure to UK inheritance tax can be mitigated for non-doms by using an offshore trust. Non-doms can choose, in certain circumstances, to be taxed on the Remittance Basis.