James what is CGT and IHT..as im having a senior

moment my mind is blank..

Capital Gains Tax and Inheritance Tax.

They must have changed the rules then.

A couple of years after coming to Spain 20 + years ago, I notified the Inland Revenue that I had moved to Spain forever. They sent the paperwork which I took to the Hacienda. They sent it back to UK and the Inland Revenue wrote to me to confirm that I was no longer tax resident in UK. Apart from on my Government employee pension which is always taxable at source.

You need to re-read my post. Tax residency is VERY different to being domiciled.

If you are considered domiciled in UK, you can still be tax resident in Spain AND have to pay both Spanish succession tax AND UK IHT!

Perhaps someone (Fred) can find a suitable link?

Here's one I found domicile

this is also a good article report on domicility

I should have said, ´........ and the Inland Revenue wrote to me to confirm that I was no longer tax resident NOR DOMICILED in UK´

That was before I had actually made my first tax return in Spain.

I had explained that I cut all my ties with UK (apart from my government employee pension) and that I would never be returning.

it has been my understanding that on birth you will be domiciled in the country that your father is domiciled, until you reach legal/working age it will stay as such at which point you can then change it. But it seems to leave an impression behind and if there is any doubt you will revert to the domicile of your father

Mine does not come under the Spanish tax system because they do not deal with these pensions so I am under UK tax for it. I am come under the tax in Spain for my normal state pension. My OH comes under Spain for his state pension and his company pension. We actually do not pay any tax due to how little we receive, we put in nil returns.

Rosemary

Do you have dual citizenship or is your citizenship not British. I ask because to lose UK Domicile is very difficult as many very rich people complain even to the Supreme Court. I have just gone through the process of becoming Tax Resident in Spain and Non-Tax Resident UK finally getting the Hacienda here in Ayamonte to stamp and sign my FD 9 (after 2 years tax returns to Spain) for return to UK but the letter of confirmation from HMRC does not mention Domicile and I have not lost my UK domicile.

It would be very unusual for HMRC to confirm that you were a "non-dom" ie. not domiciled in the UK unless you already had a domicile somewhere else.

As far as someone who has normal UK domicile is concerned, as you say it is very difficult to change that domicile and HMRC will never confirm your domicile status until the situation arises where it is important in a specific tax ruling. You certainly cannot normally apply to change it.

Tax domicile is a peculiar UK thing - other countries don't normally have such a thing. If you see someone being described as tax domiciled it usually just means tax resident.

UK tax residency and domicile is a very complicated subject. If you really want to know all about it here's some bedtime reading. Warning - it will probably make your brain hurt!

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

You are still, though, a British citizen, so still have ties, also you are receiving a UK pension, so still have ties, it's almost impossible to sever ALL ties with the UK.

Is she / he ?

If he/she isn't and isn't a Spanish citizen, then the OP is stateless, you don't lose your British citizenship my moving to another country, even if you don't have a passport or driving licence, you were BORN in the UK, so are a British Citizen.

She/he may just have been born in say Canada and acquired British Citizenship as friend of ours did since their parents, grandparents and so on were British. Harder to do now but not impossible.

Most people on the UK pension here ..Have never got into the spanish system..they came here and rented their home and get their pension paid into their UK bank..I asked about Spanish Tax And they never heard about it..

True, but they are living there illegally then, even if you are only receiving the UK state pension, you should declare it, you won't have to pay any tax, but it's important to avoid inheritance tax. We made Spanish tax returns every year we lived there, I think the most we had to pay was €2 because I get an NHS pension, but we were legal. Many of the people we met while there were also NOT making a tax return, and a lot were driving UK reg cars, but that's been discussed so many times before.