Finance Act 2012

Increased charge U.K.

1 U.K. Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows.

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

(2) In subsection (1), for paragraph (b) substitute—

“(b) meets the 12-year residence test or the 7-year residence test for that year.”

(3) After that subsection insert—

“(1A) An individual meets the 12-year residence test for a tax year if the individual 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 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.”

(4) In subsection (4), for “£30,000” substitute “—

(a) for an individual who meets the 12-year residence test for that year, £50,000;

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

3 (1) Section 809H (claim for remittance basis by long-term UK resident: charge) is amended as follows. U.K.

(2) In subsection (1), for paragraph (c) substitute—

“(c) the individual meets the 12-year residence test or the 7-year residence test for the relevant tax year.”

(3) After that subsection insert—

“(1A) See section 809C(1A) and (1B) for when an individual meets the 12-year residence test or the 7-year residence test for a tax year.”

(4) In subsection (4), for “£30,000”, in each place it occurs, substitute “ the applicable amount ”.

(5) After subsection (5A) insert—

“(5B) The applicable amount” is—

(a) if the individual meets the 12-year residence test for the relevant tax year, £50,000;

(b) if the individual meets the 7-year residence test for the relevant tax year, £30,000.”

4 U.K. For section 809V substitute—

“809V Money paid to the Commissioners

(1) Subsection (2) applies to income or chargeable gains of an individual if—

(a) the income or gains would (but for subsection (2)) be regarded as remitted to the United Kingdom by virtue of the bringing of money to the United Kingdom,

(b) the money is brought to the United Kingdom by way of one or more direct payments to the Commissioners, and

(c) the payments are made in relation to a tax year to which section 809H applies as regards the individual.

(2) The income or chargeable gains are to be treated as not remitted to the United Kingdom to the extent that the payments do not exceed the applicable amount (as defined in section 809H).

(3) Subsection (2) does not apply to payments if or to the extent that they are repaid by the Commissioners.”