Why are residence and domicile important?
Some international students may pay less tax in the UK than people who live, or have lived, in the UK all of their lives. This is because of their residence and domicile status.
Some international students come to the UK for periods that cover more than one UK tax year and all of their income generally comes from the UK. For these international students, the UK tax system is generally much the same as for everyone else in the UK.
In the tax year of arrival and the tax year of departure, though, your tax bill may be lower as you may be entitled to a full year of the personal allowance but only have a part-year of taxable income.
In some situations – for example, if you have income or gains from countries outside the UK (foreign income or gains), or in the tax year of arrival in or departure from the UK – your tax position may be more complicated, because residence and domicile have to be taken into account.
You may have to consider the tax rules in more than one country, and even look at double taxation agreements to determine where you have to pay tax.