Part 14Income tax liability: miscellaneous rules
F1Chapter A1Remittance basis
Remittance of income and gains: meaning of “remitted to the United Kingdom”
809LMeaning of “remitted to the United Kingdom”
(1)
An individual's income is, or chargeable gains are, “remitted to the United Kingdom” if—
(a)
conditions A and B are met,
(b)
condition C is met, or
(c)
condition D is met.
(2)
Condition A is that—
(a)
money or other property is brought to, or received or used in, the United Kingdom by or for the benefit of a relevant person, or
(b)
a service is provided in the United Kingdom to or for the benefit of a relevant person.
(3)
Condition B is that—
(a)
the property, service or consideration for the service is (wholly or in part) the income or chargeable gains,
(b)
the property, service or consideration—
(i)
derives (wholly or in part, and directly or indirectly) from the income or chargeable gains, and
(ii)
in the case of property or consideration, is property of or consideration given by a relevant person,
(c)
the income or chargeable gains are used outside the United Kingdom (directly or indirectly) in respect of a relevant debt, or
(d)
anything deriving (wholly or in part, and directly or indirectly) from the income or chargeable gains is used as mentioned in paragraph (c).
(4)
Condition C is that qualifying property of a gift recipient—
(a)
is brought to, or received or used in, the United Kingdom, and is enjoyed by a relevant person,
(b)
is consideration for a service that is enjoyed in the United Kingdom by a relevant person, or
(c)
is used outside the United Kingdom (directly or indirectly) in respect of a relevant debt.
(5)
Condition D is that property of a person other than a relevant person (apart from qualifying property of a gift recipient)—
(a)
is brought to, or received or used in, the United Kingdom, and is enjoyed by a relevant person,
(b)
is consideration for a service that is enjoyed in the United Kingdom by a relevant person, or
(c)
is used outside the United Kingdom (directly or indirectly) in respect of a relevant debt,
in circumstances where there is a connected operation.
(6)
In a case where subsection (4)(a) or (b) or (5)(a) or (b) applies to the importation or use of property, the income or chargeable gains are taken to be remitted at the time the property or service is first enjoyed by a relevant person by virtue of that importation or use.
(7)
In this section “relevant debt” means a debt that relates (wholly or in part, and directly or indirectly) to—
(a)
property falling within subsection (2)(a),
(b)
a service falling within subsection (2)(b),
(c)
qualifying property dealt with as mentioned in subsection (4)(a),
(d)
a service falling within subsection (4)(b),
(e)
qualifying property dealt with as mentioned in subsection (5)(a), or
(f)
a service falling within subsection (5)(b).
F2(8)
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(9)
The cases in which F3property (including income or chargeable gains) is used in respect of a debt include cases where the property is used to pay interest on the debt.
(10)
This section is subject to sections 809V to 809Z6 (property treated as not remitted to the United Kingdom).