10.01 – Tax residence of Individuals

In most circumstances, an individual will be tax resident in the country (or other jurisdiction) where they live and work. If an individual files a tax return or pays tax in a country, including direct payment of employment taxes (such as PAYE in the UK, ITIS in Jersey, etc), then they are likely to be a tax resident there.

However, in special cases where an individual has ties to more than one jurisdiction that individual may be ‘dual resident’, a tax resident of more than one country or jurisdiction. For example, the USA always treats their citizens as tax resident regardless of where they are living. This means that a US citizen is always a US tax resident, even if they are living and working in the UK and also UK tax resident.

In these cases, the individual should certify as tax resident in ALL the places they are a tax resident, and their financial accounts will then be reported to all Reportable Jurisdictions where they have certified themselves as tax resident.

If an individual is not certain where they are tax resident, then they should refer to HMRC guidance or ask their tax adviser.