When are income and gains remitted?

An individual remits foreign income or gains where money (or more widely, property) is brought to, received or used in the UK. The funds or assets may be used in the UK for the individual’s own benefit or the benefit of a relevant person. A relevant person is broadly someone associated with them and is defined below.

A relevant person includes the following:

• 1)the individual
• 2)spouse, for this purposes including a civil partner or cohabitant
• 3)child or grandchild of the individual or of a spouse or partner as in (2), if that child or grandchild is under 18
• 4)a trust where the individual or other relevant person is a beneficiary
• 5)a company connected with a trust as in (4)
• 6)a close company of which the individual or other relevant person is a shareholder, or a company which is a 51% subsidiary of such a close company

ITA 2007, s 809M

A close company is defined as a company which is controlled by:

• •five or fewer shareholders
• •shareholders all of whom are directors

CTA 2010, s 439