The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note considers how to make a formal election for the remittance basis and the consequences of making that election.
An outline of the remittance basis can be found at the Remittance basis ― overview guidance note. For the machinery of the charge, including nomination and payment, see the Remittance basis ― nomination, charge and payment guidance note.
A discussion of what is meant by a remittance can be found in the When are income and gains remitted? guidance note.
Before you consider whether your client needs to elect for the remittance basis, you should also check whether he is entitled to it automatically. This applies where, in relation to a given tax year, the individual meets any of the following tests:
he has unremitted income and gains totalling less than £2,000
he is under 18 at the end of the year, has no more than £100 of UK taxed investment income and no other UK taxable income, and does not remit any relevant income or gains to the UK *
he has been resident in the UK for not more than six out of the last nine tax years, has no more than £100 of UK taxed investment income and no other UK taxable income, and does not remit any relevant income or gains to the UK *
* Note that these latter two automatic remittance basis cases are affected by the abolition of income tax at source on UK interest with effect from 6 April 2016.
These automatic bases are discussed in the Automatic remittance basis guidance note.
A person who is resident in the UK and who qualifies for the remittance basis, but does not fall into any of the above ‘automatic’ categories, must make a formal claim.
In terms of who qualifies for the remittance basis, the rules changed on 6 April 2013. Prior to this date, individuals who were not domiciled in the
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