Personal Tax

Remittance basis ― nomination, charge and payment

Produced by Tolley
  • 09 Dec 2021 15:01

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

  • Remittance basis ― nomination, charge and payment
  • Remittance basis charge
  • Deemed domicile ― impact on remittance basis claims
  • How the remittance basis charge works
  • Nominating the underlying income
  • Reporting
  • Calculating nominated income
  • Insufficient nomination
  • No nomination
  • Excess nomination
  • More...

Remittance basis ― nomination, charge and payment

The Remittance basis ― formal election guidance note explains who can make an election for the remittance basis, and the consequences of making the election. You are advised to read that guidance note first.

This note covers the machinery of the remittance basis charge (also referred to as the RBC), including nomination and payment.

An outline of the remittance basis can be found in the Remittance basis ― overview guidance note. A discussion of what is meant by a remittance can be found in the When are income and gains remitted? guidance note.

Remittance basis charge

Individuals who have been resident in the UK for at least seven out of the previous nine tax years and who are over the age of 18 have to pay an annual charge to use the remittance basis. These are known as long-term residents. The amount of the charge depends on the length of time the individual has been resident in the UK:

Period of UK residenceTax years in forceAmount of remittance basis charge per tax year
At least seven out of the previous nine tax years2008/09 onwards£30,000
At least 12 out of the previous 14 tax years2012/13 onwards£60,000 (was £50,000 for 2012/13 to 2014/15 inclusive)

ITA 2007, s 809C

The £90,000 charge for those present in the UK for at least 17 out of the previous 20 years was repealed from 2017/18 onwards as part of the introduction of the concept of deemed domicile for income

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