Domicile vs. Residence: A Guide to US Tax Requirements for US Expats in the UK by Xerxes Associates LLP

"Domicile vs. Residence" is a crucial distinction that holds significant implications for US expatriates residing in the United Kingdom. It directly impacts their US tax obligations and understanding these terms is essential to navigating the complexities of tax compliance. Xerxes Associates LLP, a leading US and UK tax advisory firm, offers expert insights into the concepts of domicile and residence and how they influence US tax requirements for US expats in the UK.

Differentiating Domicile vs. Residence:


Residence typically refers to the place where an individual currently lives or has a physical presence. It is determined by factors such as the number of days spent in a particular location and the nature of the ties a person has to that place.


Domicile is a more nuanced concept. It goes beyond mere physical presence and encompasses an individual’s long-term, permanent, and legal association with a particular place. Domicile is often characterised by a person’s intention to make a location their permanent home, as well as their legal and financial ties to that place.

Implications for US Tax Requirements:

Residence for US Expats:

US expats are considered residents of the country where they are physically living, such as the United Kingdom. As residents, they are subject to various tax obligations in the UK, including income tax on their UK earnings.

Domicile for US Expats:

Domicile, on the other hand, is a more complex matter and often involves a deeper level of commitment. While US expats may establish a residence in the UK, they may not necessarily change their domicile, which could remain in the United States. Domicile can affect inheritance tax and other long-term tax considerations.

How Xerxes Associates LLP Can Assist:

Xerxes Associates LLP provides expert guidance to US expats in understanding and managing domicile and residence:

Domicile Evaluation:

We assist US expats in evaluating their domicile status and offer strategic advice on how to manage and establish domicile based on their specific situation.

Tax Planning:

Xerxes Associates provides tailored tax planning services to optimise the tax position of US expats by considering both residence and domicile factors, ensuring full compliance with US tax regulations while living in the UK.

Comprehensive Support:

Our experienced team offers comprehensive support for managing domicile and residence, considering their implications for income tax, inheritance tax, and long-term financial planning.

Domicile vs. residence is a critical distinction that influences US tax requirements for US expats in the UK. Xerxes Associates LLP is your trusted partner in understanding and managing these concepts. We offer expert guidance to ensure that you navigate the complexities of tax compliance effectively while considering both residence and domicile factors. Trust us to help you optimise your tax position and make informed decisions regarding your US tax obligations as a US expat in the United Kingdom.

Contact us via or fill out our contact form to discuss your expat tax situation with us.

Read more here: Xerxes US Expats Living & Working in the UK Blog.