The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note explores whether those who are entitled to use the remittance basis should do so. Before this question can be answered, the individual needs to understand:
the scope of the remittance basis
whether they have to make a claim for the remittance basis, and
whether they have to pay the remittance basis charge for making a claim
The decision as to whether to use the remittance basis is made on an annual basis. If an individual chooses not to use it, then they will be taxable in the UK on their worldwide income and gains using the arising basis of assessment, as if they were resident and domiciled in the UK.
This means the individual must declare all their overseas income and gains in the year in which they arise, even if none of it is brought into the UK.
Certain individuals are taxable in the UK on their UK income and gains alone, and pay UK tax on foreign income and gains only if these are remitted (brought) to the UK. This is the remittance basis of taxation. Depending on the circumstances, the individual may have to pay a charge to use the remittance basis (see below).
UK resident and non-domiciled individuals have always been able to access the remittance basis and can do so on their foreign income and gains. However, from 2017/18 onwards, to access the remittance basis they must also not be deemed domiciled in the UK. The only exception to this rule is where the individual has unremitted income and gains of less than £2,000; they can continue to access the automatic remittance basis even if they are deemed domiciled.
For more information, see the Remittance basis ― overview and Who can access the remittance basis (2013/14 onwards)? guidance notes.
The first steps are to establish, in relation to the particular 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
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.