Personal Tax

Remittance basis ― exempt property

Produced by Tolley
  • 19 Oct 2021 22:36

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Remittance basis ― exempt property
  • Outline of the rules
  • Public access rule
  • Condition B ― available for public access at an approved establishment
  • Condition C ― two-year period
  • Personal use rule
  • Repair rule
  • Temporary importation rule
  • Notional remitted amount less than £1,000
  • Sales of exempt property
  • More...

Remittance basis ― exempt property

Individuals who are UK resident and not domiciled or deemed domiciled in the UK can use the remittance basis of taxation to ensure that they are only taxed on their foreign income and gains in the UK to the extent these are remitted to the UK. See the Remittance basis ― overview and Who can access the remittance basis (2013/14 onwards)? guidance notes.

The rules on when income and gains are remitted to the UK are explained in the When are income and gains remitted? guidance note, and you are advised to read that note first.

The normal rule is that property brought to, or used in the UK, by or for the benefit of a relevant person is a taxable remittance if it has been purchased out of (or derived from) relevant foreign income / gains.

However there are a number of exceptions to this general rule so that certain property can be remitted to the UK without attracting a tax charge under the remittance basis rules.

Outline of the rules

Exempt property is divided into five categories, each of which is discussed further below:

  1. property that meets the public access rule

  2. clothing, footwear, jewellery and watches which meet the personal use rule

  3. property of any description which meets the repair rule

  4. property of any description which meets the temporary importation rule

  5. property where the notional remitted amount is less than £1,000

ITA 2007, s 809X

Exempt property can be sold in the UK without attracting a tax charge as long as the proceeds are taken back offshore or reinvested in a qualifying UK company within a limited period of time (see below).

Exempt property which is lost, stolen or destroyed is not treated as being in the UK from the date on which the loss etc occurs, to the date on which compensation is received or the property is recovered. If the property and / or the compensation is taken offshore within 45 days of

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information


Popular Articles

Capital vs revenue expenditure

Capital vs revenue expenditureExpenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and

25 Oct 2021 07:01 | Produced by Tolley Read more Read more

Subsistence expenses

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

05 Jan 2022 14:31 | Produced by Tolley in association with Philip Rutherford Read more Read more

Change in ownership provisions

Restriction of carry forward and carry back of trading lossesFollowing the extensive changes to the loss carry forward provisions introduced from 1 April 2017, the anti-avoidance rules restricting the offset of trading losses following a change in ownership were tightened up and extended.

19 Oct 2021 08:12 | Produced by Tolley Read more Read more