Part 14Income tax liability: miscellaneous rules
C1C3C4C5C6C7C15C16F1Chapter A1Remittance basis
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (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)
Pt. 14 Ch. A1 modified by 1988 c. 1, s. 762ZB(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)
Pt. 14 Ch. A1 modified by 1992 c. 12, s. 87B(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119))
Pt. 14 Ch. A1 modified (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 19(3)
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41F(8) (as substituted (6.4.2015) by Finance Act 2014 (c. 26), Sch. 9 paras. 5, 47 (with Sch. 9 para. 48))
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))
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))
Application of remittance basis
C10C15C16C17809BC2C15C16Claim for remittance basis to apply
1
This section applies to an individual for a tax year if the individual—
a
is UK resident F11for that year ,
b
is not domiciled in the United Kingdom in that year F12..., and
c
makes a claim under this section for that year.
C13F261A
Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b).
F132
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
C9C8C15C16C14809CC15C16Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply
1
This section applies to an individual for a tax year if the individual—
a
is aged 18 or over in that year, and
F221ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F91A
An individual meets the 12-year residence test for a tax year if the individual—
F23a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F19b
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 F24... 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 F10—
F25za
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a
for an individual who meets the 12-year residence test for that year, F20£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).
F25A
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.
C11C18C15C16809DC15C16Application of remittance basis without claim where unremitted foreign income and gains under £2,000
1
This section applies to an individual for a tax year if—
a
the individual is UK resident F15for that year ,
b
the individual is not domiciled in the United Kingdom in that year F16..., and
c
the amount of the individual's unremitted foreign income and gains for that year is less than £2,000.
F3unless condition A or condition B is met.
F41A
Condition A is that F14... 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.
C12C19C15C16809EC15C16Application of remittance basis without claim: other cases
1
This section applies to an individual for a tax year if—
a
the individual is UK resident F17for that year,
b
the individual is not domiciled in the United Kingdom in that year F18...,
F5c
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
F6unless 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.
F271A
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.
F72A
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.
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)