Foreign Capital Gain & Claiming Non-Dom status - will Non-Dom status rolled back for years?

Good afternoon HMRC team, Can you please help answering the following 3 questions. I live in the UK since 1999 but moved back and forth between UK and EU for work purposes (changing jobs) a number of times. From HMRC perspective I am a UK resident because I was unaware about the UK Non—Domicile options, hence in the previous years I never selected “non—domicile” in my self-assessment. Even if I was living and working in the EU – and not in the UK, I filed UK self-assessments (as I did self-assessment in the EU). I always planned to return to EU and leave the UK but never indicated this on my SA (e.g. domiciled outside of the UK). Now I realised I need to amend my 2021—2022 SA because I sold my EU property in February 2022 and a month later I bought another property in the EU. Now the foreign Capital Gains for 2021-2022 need to be reported, thus an amendment is needed. I would like to amend my 2021-2022 assessment as Non-Dom UK tax resident with remittance basis. From self assessment point of view and HMRC perspective I always been categorised as a UK-Tax resident, I did not claim otherwise. I always created and submitted my self-assessment. If I am checking the last 20 years prior to tax year 2021-2022, I spent 4+4 years as “Non-UK tax resident” (based on the number of days spent in the UK and UK ties) and the remaining 12 as “UK-Tax resident”. Based on my calculations, I do not break the 15 out of 20, 12 out of 14 or 7 out of 9 years rule. 1. Question 1: can I claim in 2021-2022 amendment the Non—dom status with remittance basis although I did not claim it in the previous years before? 2. Question 2: if I do claim Non-dom status for 2021—2022, how do I do it, do I have to amend 2021—2022 and all previous 20 years tax returns (because I did not marked these years in my self-assesments submitted)? 3. Question 3: should my Non—dom status be accepted by HMRC, will HMRC roll back my Non-dom status for the last 20 years? I am ssking this because I had a UK property disposal with capital gain back in 2017 (while I lived in the UK, in the property and was classified as UK Tax resident) with UK capital gain. If I claim Non-dom status with remittance in 2021—2022 SA amendment, will HMRC roll back my Non—dom status and request Capital Gain tax for the UK property disposal in 2017? UK property sold before the rule was announced (RDRM25070)? https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm25070 RDRM25070 - Domicile: Deemed domicile: Leaving the UK prior to 6 April 2017 If you could answer all 3 questions would bee appreciated, many thanks.

Hi lbwagner,
Please have a look at the guidance on the remittance basis here:
Guidance note for residence, domicile and the remittance basis: RDR1 Updated 25 April 2023 
You can amend tax returns for the tax years 21/22 and 22/23 and submit an overpayment relief claim:
SACM12150 - Overpayment relief: Form of claims for 19/20 & 20/21.
Any earlier years are out of date and cannot be changed.
You can choose whichever tax years you want to use the remittance basis and which the arising basis.  
To claim the remittance basis means you will need to submit the supplementary page SA109.
When claiming the remittance basis, you lose your personal allowance / annual exempt allowance and become taxable only on your UK income plus £30000 if you are resident in the UK for 7 of the last 9 years.
60000 if you are resident in the UK for 12 of the last 14 years and you are treated as 'deemed domiciled' in the UK after 16 years.  
Where you are deemed domicile, you can no longer use the remittance basis and will be taxed on your world wide income and gains in the tax year they arises.
Thank you. 
 

Hi HMRC Admin 25, thank you for your answer really appreciate it. I have only two follow up questions. "From 6. April 2007 the Deemed Domicile Condition B is met if – the individual: has been "UK RESIDENT" for at least 15 of the 20 years immediately before the relevant tax year". Am I correct that the "YEAR" refers to "UK TAX RESIDENCY" or "NON-UK TAX RESIDENCY" that is determined by the SRT? https://www.tax.service.gov.uk/guidance/check-your-UK-residence-status/start/choose-tax-year "Residence" does not not mean "years living in the UK" but rather to the result from the SRT, is this correct? In other words, I could be living in the UK for 2 or 3 years and still being non-UK Tax resident based on the SRT results, can you confirm please? SRT is the tool used to determined the years if someone is UK resident or not a UK resident for the relevant tax year and these years are counted towards the 15 out of 20 years for determine of someone is Non-Domiciled UK resident or in fact if they are Deemed domiciled. "Resident"= the results of SRT per year e.g. "UK Tax resident " or "Not a UK Resident" for a specific Tax Year which decedies if someone is Non_-dom or Deemed Domiciled. Finally, if someone does not break the (7 of 9, 12 of 14 or 15 of 20) years based on SRT and claim Non-Dom with remittance status in 2021-2022 and 2022-2023, HMRC will not roll back the individual's Non-Dom status for the previous years and suddenly request UK Capital Gain tax payment for a UK property which has been sold e.g. in a previous year, or will they? Can you please confirm these 2 questions please? Thank you for your comprehensive answer.

Hi,
 

The statutory residency tests (SRT), determine residency status and apply to UK tax years from 6 April to 5 Ap‏ril next and not calendar years.  If the result of the tests are that you are resident, then you will be considered resident in the UK for tax, until you leave the UK.  The residence test will then need to be applied to determine if you are tax resident for the whole tax year.  If there are periods where you are overseas and the test confirm you are not resident, then the tax years you are not resident will be taken into account when calculating the 7 of the last 9 years, 12 of the last 14 and 15 of the last 20 results .  If you have been resident in the UK for 15 of the last 20 tax years, you are deemed domiciled and the remittance basis cannot be used .  The link to the online test covers tax years from 6 April 2017 to 5 April 2018 up to 6 April 2023 to 5 April 2024 .  If you are resident in the UK in a tax year for more than 183 days, you are considered tax resident .  The number of days can also go down as low as 16 days, if you have ties to the UK, such as employment, accommodation, even family ties . It does not matter if you are resident or not resident in the UK and dispose of a UK property.  You will be subject to capital gains tax on any gains arising from the disposal, under the section for immoveable assets .  This is built in to every UK double taxation agreement the UK agrees with overseas countries . Thank you.