Remittance basis ― nomination, charge and payment

Produced by Tolley

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 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, 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 last 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 last nine tax years2008/09 onwards£30,000
At least 12 out of the last 14 tax years2012/13 onwards£60,000 (was £50,000 for 2012/13 to 2014/15 inclusive)
At least 17 out of the last 20 years2015/16 to 2016/17 *£90,000

ITA 2007, s 809C

* The £90,000 charge was repealed from 2017/18 onwards as part of the introduction of the concept of deemed domicile for income tax and capital gains tax (see below).

The charges are mutually exclusive, meaning no taxpayer suffers more than one charge in the same tax year.

These charges are collectively referred to as the remittance basis charge and are discussed in more detail in the Remittance basis ― formal election guidance note.

Deemed domicile ― impact on remittance basis claims

The concept of deemed domicile was introduced for income tax and capital gains tax from 2017/18 onwards.

In summary, an individual is deemed UK domiciled if he:

  1. has been UK

Popular documents