Xiao, who is originally from China and runs the California-based Pailala Institute, has led paida lajin workshops around the world.
Carr-Gomm, 71, died at Cleeve House country hotel in western England while attending a workshop run by Xiao.
Her son Matthew said after her death that she had sought “alternative methods of treating and dealing with her diabetes” because she struggled to inject insulin due to a fear of needles.
“I know she was desperate to try and cure herself of this disease,” he said. “She always maintained a healthy lifestyle and was adamant that nothing would stop her from living a full life.”
Police said Xiao, 60, is due to appear in court in Salisbury, southwest England, on Friday.