Income Tax Act 2007

[F1 Application of remittance basis U.K.

Textual Amendments

F1 Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)

809B Claim for remittance basis to apply U.K.

(1) This section applies to an individual for a tax year if the individual—

(a) is UK resident [F2 for that year] ,

(b) is not domiciled in the United Kingdom in that year F3 ..., and

(c) makes a claim under this section for that year.

[F4 (1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).]

F5 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Sections 42 and 43 of TMA 1970 (procedure and time limit for making claims), except section 42(1A) of that Act, apply in relation to a claim under this section as they apply in relation to a claim for relief.

Textual Amendments

F2 Words in s. 809B(1)(a) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 45 para. 152(2)

F3 Words in s. 809B(1)(b) omitted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 3(a) (with Sch. 46 para. 26)

F4 S. 809B(1A) inserted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(2) (with Sch. 8 para. 15(2))

F5 S. 809B(2) omitted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 3(b) (with Sch. 46 para. 26)

Modifications etc. (not altering text)

C1 S. 809B applied by 2003 c. 1, s. 41C(7) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)

C2 Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643F(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

C3 Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643N(3)(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

C4 S. 809B applied by 1992 c. 12, s. 16ZC(1)(c) (as substituted (with effect in relation to the tax year 2017-18 and subsequent years) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 5)

C5 S. 809B applied by 2005 c. 5, s. 643I(1)(g) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

C6 S. 809B(1A) modified (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 2(2)

809C Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply U.K.

(1) This section applies to an individual for a tax year if the individual—

(a) is aged 18 or over in that year, and

[F6 (b) meets F7 ... the 12-year residence test or the 7-year residence test for that year.]

F8 (1ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9 (1A) An individual meets the 12-year residence test for a tax year if the individual—

F10 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F11 (b) has been UK resident in at least 12 of the 14 tax years immediately preceding that year.]

(1B) An individual meets the 7-year residence test for a tax year if the individual—

(a) does not meet F12 ... the 12-year residence test for that year, but

(b) has been UK resident in at least 7 of the 9 tax years immediately preceding that year.]

(2) A claim under section 809B by the individual for that year must contain a nomination of the income or chargeable gains of the individual for that year to which section 809H(2) is to apply.

(3) The income or chargeable gains nominated must be part (or all) of the individual's foreign income and gains for that year.

(4) The income and chargeable gains nominated must be such that the relevant tax increase does not exceed [F13 —

F14 (za) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a) for an individual who meets the 12-year residence test for that year, [F15 £60,000];

(b) for an individual who meets the 7-year residence test for that year, £30,000.]

(5) “The relevant tax increase” is—

(a) the total amount of income tax and capital gains tax payable by the individual for that year, minus

(b) the total amount of income tax and capital gains tax that would be payable by the individual for that year apart from section 809H(2).

[F16 (5A) The references to income tax in subsection (5) do not include income tax under section 424 (gift aid).]

(6) See section 809Z7 for the meaning of an individual's foreign income and gains for a tax year.

Textual Amendments

F6 S. 809C(1)(b) substituted (17.7.2012) (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 2(2)

F7 Words in s. 809C(1)(b) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(3)(a)

F8 S. 809C(1ZA) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(3)(b)

F9 S. 809C(1A)(1B) inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 2(3)

F10 S. 809C(1A)(a) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(3)(c)

F11 S. 809C(1A)(a) and word inserted (with effect in accordance with s. 24(4) of the amending Act) by Finance Act 2015 (c. 11), s. 24(2)(c)

F12 Words in s. 809C(1B)(a) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(3)(d)

F13 Words in s. 809C(4) substituted (17.7.2012) (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 2(4)

F14 S. 809C(4)(za) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(3)(e)

F15 Sum in s. 809C(4)(a) substituted (with effect in accordance with s. 24(4) of the amending Act) by Finance Act 2015 (c. 11), s. 24(2)(e)(ii)

F16 S. 809C(5A) inserted (with effect in accordance with Sch. 27 para. 15(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 27 para. 2

Modifications etc. (not altering text)

C7 S. 809C excluded (with effect in accordance with Sch. 8 para. 16(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 16(3)

C8 S. 809C excluded (with effect in accordance with Sch. 8 para. 15(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 15(3)

C9 S. 809C excluded (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 2(3)

809D Application of remittance basis without claim where unremitted foreign income and gains under £2,000 U.K.

(1) This section applies to an individual for a tax year if—

(a) the individual is UK resident [F17 for that year] ,

(b) the individual is not domiciled in the United Kingdom in that year F18 ..., and

(c) the amount of the individual's unremitted foreign income and gains for that year is less than £2,000.

[F19 unless condition A or condition B is met.]

[F20 (1A) Condition A is that F21 ... conditions A to F in section 828B are met.

(1B) Condition B is that the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year.]

(2) The amount of an individual's “unremitted” foreign income and gains for a tax year is—

(a) the total amount of what would (if this section applied) be the individual's foreign income and gains for that year, minus

(b) the total amount of those income and gains that are remitted to the United Kingdom in that year.

Textual Amendments

F17 Words in s. 809D(1)(a) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 45 para. 152(3)

F18 Words in s. 809D(1)(b) omitted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 4(a) (with Sch. 46 para. 26)

F19 Words in s. 809D(1) inserted (with effect in accordance with Sch. 27 para. 15(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 27 para. 3(2)

F20 S. 809D(1A)(1B) inserted (with effect in accordance with Sch. 27 para. 15(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 27 para. 3(3)

F21 Words in s. 809D(1A) omitted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 4(b) (with Sch. 46 para. 26)

Modifications etc. (not altering text)

C10 S. 809D applied by 1992 c. 12, s. 16ZC(1)(c) (as substituted (with effect in relation to the tax year 2017-18 and subsequent years) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 5)

C11 S. 809D applied by 2005 c. 5, s. 643I(1)(g) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

809E Application of remittance basis without claim: other cases U.K.

(1) This section applies to an individual for a tax year if—

(a) the individual is UK resident [F22 for that year],

(b) the individual is not domiciled in the United Kingdom in that year F23 ...,

[F24 (c) for that year the individual either has no UK income or gains or has no UK income and gains other than taxed investment income not exceeding £100.]

(d) no relevant income or gains are remitted to the United Kingdom in that year, and

(e) either—

(i) the individual has been UK resident in not more than 6 of the 9 tax years immediately preceding that year, or

(ii) the individual is under 18 throughout that year

[F25 unless the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year.]

[F26 (1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).]

(2) For the purposes of subsection (1)(c) the individual's UK income and gains for the tax year are the individual's income and chargeable gains for that year other than what would (if this section applied) be the individual's foreign income and gains for that year.

[F27 (2A) For the purposes of subsection (1)(c) “taxed investment income” means UK income or gains consisting of payments within section 946 from which a sum representing income tax has been deducted.]

(3) For the purposes of subsection (1)(d) relevant income and gains are—

(a) what would (if this section applied) be the individual's foreign income and gains for the tax year mentioned in subsection (1), and

(b) the individual's foreign income and gains for every other tax year for which section 809B or 809D or this section applies to the individual.]

Textual Amendments

F22 Words in s. 809E(1)(a) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 45 para. 152(4)

F23 Words in s. 809E(1)(b) omitted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 5 (with Sch. 46 para. 26)

F24 S. 809E(1)(c) substituted (with effect in accordance with Sch. 27 para. 15(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 27 para. 4(2)

F25 Words in s. 809E(1) inserted (with effect in accordance with Sch. 27 para. 15(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 27 para. 4(3)

F26 S. 809E(1A) inserted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(4)

F27 S. 809E(2A) inserted (with effect in accordance with Sch. 27 para. 15(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 27 para. 4(4)

Modifications etc. (not altering text)

C12 S. 809E applied by 1992 c. 12, s. 16ZC(1)(c) (as substituted (with effect in relation to the tax year 2017-18 and subsequent years) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 5)

C13 S. 809E applied by 2005 c. 5, s. 643I(1)(g) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))