The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The rules on remittance changed from 6 April 2008, when it became both more complex and more expensive to utilise the remittance basis. The rules changed again on 6 April 2013 as the abolition of the concept of ordinary residence meant that certain people who had been able to use the remittance basis were no longer able to do so (subject to transitional rules).
This guidance note introduces the remittance basis of taxation and explains what ‘remittance basis’ means. For details of who can qualify for the remittance basis, see the following guidance notes as appropriate:
This guidance note discusses the legislation which applied from 6 April 2008 only. For the earlier rules and transitional provisions, see RDRM36000–RDRM36470.
For commentary on the earlier rules, please click here for the pdf extract from Tolley’s Income Tax 2012/13:
Click here to view pdf
This guidance note does not cover trusts. For the interaction between remittance rules and trusts, see RDRM33590 and RDRM33595.
For more on non-resident trusts, see the UK tax position of non-resident trusts guidance note (and other notes in that sub-topic) and Simon’s Taxes Division C4.4 (both subscription sensitive).
Most people in the UK are taxable on their worldwide income and capital gains on an arising basis. This means that income is taxable when it is paid to the individual or put at his disposal, for instance, by being credited to a bank account. Gains are usually taxable when the disposal occurs. If the individual is taxable on the arising basis, he must declare all his overseas income and gains in the tax year
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login