The continuing relevance of domicile: Sir John Griffin v HMRC [2026]

The recent First-tier Tribunal decision in Sir John Griffin v HMRC provides a timely reminder of the principles governing domicile and of its continuing relevance following the reforms introduced on 6 April 2025.

HMRC challenged the Irish domicile position on which the Addison Lee founder had prepared his self-assessment returns for the tax years 2013/14 to 2019/20 and claimed the remittance basis in respect of foreign income and gains. The decision increased his tax liability by more than £20.5 million.

Sir John had an Irish domicile of origin. The tribunal nevertheless concluded that he had acquired an English domicile on two alternative bases. First, his father had acquired an English domicile of choice before Sir John reached majority, so that Sir John acquired an English domicile of dependence. Secondly, and independently, Sir John had himself acquired an English domicile of choice before the relevant tax years.

Although Sir John retained a strong and genuine emotional attachment to Ireland, the evidence showed that England was where he had established his home, raised his family, built his business and organised his personal and professional life. His hope of spending more time in Ireland was not a sufficiently definite intention to make Ireland his permanent or indefinite home.

The decision does not mean that emotional ties or a person’s stated intentions are irrelevant. Rather, those matters must be assessed against the person’s conduct and the objective circumstances of their life. A mere hope of returning to another country will not necessarily prevent the acquisition of a domicile of choice.

Why domicile still matters

• Domicile remains relevant to historic inheritance tax (IHT) positions. Individuals who left the UK before 6 April 2025 may need to assess the length of their IHT “tail”. A person who was non-UK domiciled and left before that date may have only a three-year IHT tail and may fall outside the new long-term resident rules. HMRC is nevertheless likely to continue examining historic domicile claims where significant tax is at stake.

• The Temporary Repatriation Facility allows qualifying individuals to remit historic foreign income and gains at reduced rates of 12% currently and 15% in the final year. Eligibility depends on the individual’s historic use of the remittance basis and non-domiciled status. If HMRC successfully challenges that status, earlier claims to the remittance basis could be undermined.

• Historic domicile remains important for trusts holding property that qualified as excluded property under the pre-6 April 2025 rules, particularly property comprised in a settlement immediately before 30 October 2024. If HMRC successfully challenges the settlor’s domicile position, the trust may face significant IHT consequences and wider UK tax implications. This is likely to be an area of future HMRC scrutiny.

• Domicile continues to be relevant under some inheritance and estate tax treaties. The UK-India Estate Duty Treaty is possibly the most significant example. In appropriate circumstances, it may restrict the UK’s ability to charge IHT on non-UK property notwithstanding the individual’s treatment as a long-term UK resident under domestic law. The result is highly fact-sensitive and requires detailed treaty analysis.

Key takeaway

Although domicile ceased to be the principal connecting factor for the remittance basis and most IHT purposes from 6 April 2025, it has not disappeared from the tax landscape. It remains relevant to historic tax positions, aspects of the transitional rules for offshore trusts, and certain estate tax treaties.

Griffin demonstrates that domicile disputes turn on a careful assessment of residence and intention. Statements of intention and emotional attachment matter, but they must be consistent with the individual’s conduct and the objective circumstances of their life. Anyone relying on an historic domicile position should ensure that it is supported by robust contemporaneous evidence.

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