Domicile has much in common with cricket. The English invented this beautiful game, and spread it throughout their Empire. There it was adopted with such enthusiasm that now the former colonies return to the motherland to beat them at their own game.

So too was "domicile" spread. However far British individuals were from the mother country, they kept the benefit of their base jurisdiction by retaining their domicile of origin (unless they chose to cut the umbilical cord by going native). Those who did not share the same origin could not have this benefit. They would have to make do with their own origins, and thus the laws of their original jurisdictions. Unless extraordinarily they embraced England or the particular colony etc as a replacement motherland (and the umpire-judges ensured that the rules made this unlikely), they remained outside the circle as "non-UK domiciliaries".

The years passed, the Empire faded into history, and the blessings of a retained domicile with it. The laws of domicile, however, were by now embedded in the system. Domicile had become a differential factor between full and part-time taxpayers. It would not have been "cricket" for foreigners to contribute unfairly to the Exchequer. Even then, it was recognised as being a potential discouragement to inward investment into the UK. As travel became quicker and easier, so came mobility, and the increased ability to benefit from these tax rules. The financial benefit of being outside the domicile rose from the ashes of the Empire, so that now those not domiciled in the UK can use the same rules which were designed to keep them out, to ensure they remain outside. Why? Because, they need pay no UK tax at all, even if they live in the UK, except on their UK income and (possibly) gains. By embracing the exclusivity of the domicile rules, the "excluded ones" have turned those rules into financial success for themselves.

At this point the analogy with cricket breaks down. Despite the schoolboy joke that, at the peak of Empire, the map of the world was mostly pink, the fact was that the greater part remained stubbornly a different colour. It is not just the inhabitants of the Empire who are beating the English at their own game: it extends to the rest of the world. The pendulum has swung diametrically opposite - the perfect reverse swing.

What is "domicile"? Why is it a factor for UK taxation? What are the benefits?

This article addresses domicile from a UK viewpoint, although other systems derived from UK common law have similar basic rules.

Domicile is at first sight an elusive concept. The UK version could be said to have been designed to preserve the jurisprudential singularity, if not insularity, of the British. At times it seems illogical, with results which sometimes conflict with common sense, until one understands the logic of its principles. Hard law makes good law.

The fundamental principles were laid down by (principally) the English Courts through the 19th century, and through the 20th century have stood the test of scrutiny, increasingly within the sphere of taxation, so that, standing on the brink of the 21st century, we can speak confidently about them. Indeed, a lawyer from the late Victorian age would feel as comfortable as we do. This is important, when so much financially may depend on applying correctly the laws of domicile.