domicile vs. residence

A bit confused on this still...

I'm resident in the UK (have been since July 2005), with only short trips (4 weeks in all) back to the US since then to visit folks. I've got a UK driving license, bank accounts, and set up my music business here (self-employed). But my California drivers license (expires in '08) and bank accounts are still valid/open. That said, most assets are actually in a US brokerage account located outside California.

So I _think_ I'm UK resident, US domicile. Does that sound right?

As for California taxes -- I'm not resident there, but do I need to pay state tax on income generated from that non-California brokerage account?

Thanks!

that's right! I'm not a professional, so don't hold me to it, but Domicile means you still have ties to that country - i.e., credit cards, drivers license, PO box, bank accounts, something that says you are present in some way (whether you are physically or not). I am a resident in the UK and have domicile in the US. I wish I didn't, but I don't think I'll ever give up my credit cards and bank accounts there b/c they're valuable in my opinion.

Actually Domicile is much more arbitrary then that.  It is "where your heart is".  From a tax purpose, it really only comes into play when you die and really only has bearing on estate planning.  You could live in the UK for 50 years, with no financial ties, and still consider yourself US domiciled.  But if your life and family and heart are in the UK, then you would be UK domiciled.

As far as residency in the UK, the moment you entered the UK to live for an indefinate period of time, you become resident.  There are a few subtle break downs when you only plan to live for < 2 years or < 3 years in the UK, but it doesn't sound like it applies here.

THat's right -- my visa is til July 2009, which will give me 4 years in the UK. I think at that time I can apply for ILR, which if is right, is fully what I intend to do!

Thanks!

What is your visa status?  If work permit/HSMP then you won't be eligible for ILR until 2010.

Vicky

It's a different visa, but will cross that bridge when I come to it in '09. Just trying to wade through the taxes now!!

I'm sorry, but I didn't read before the you mentioned the State you were from.  California is a VERY VERY difficult State to break with.  They will attempt to claim tax on your worldwide income in perpitude, just as the US does.  Even if you are not physically living there, it doesn't matter.  There was some discussion in this forum about that before.  So be very careful about what you think you may or may not have to do with CA and taxes.

Hmmm....do don't happen to have a link for that thread, do you? It'd be very interesting to read, and it's not coming up with my searches on this forum.

Thanks!

Hmmm... I found at least three threads by typing California in the search field...

http://talk.uk-yankee.com/index.php?topic=28424.msg365555#msg365555
http://talk.uk-yankee.com/index.php?topic=24153.msg303043#msg303043
http://talk.uk-yankee.com/index.php?topic=27209.msg344218#msg344218

All talk about CA and that they like to tax you even after you have left...

Thanks for those links! (The search for "California residency" hadn't brought anything up, and I'd not thought to make the search so broad as "California".