Personal Tax

Unremittable income

Produced by Tolley
  • 22 Nov 2021 10:01

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

  • Unremittable income
  • When income cannot be remitted
  • Tax years prior to 6 April 2005
  • How is a claim made?
  • When is the income taxable?
  • Trading income
  • When is the income taxable?

Unremittable income

Most people in the UK are taxable on their worldwide income on an arising basis. This means that it is taxable when it is paid to the individual or put at their disposal, for instance, by being credited to a bank account.

Individuals who are not domiciled or deemed domiciled in the UK may be able to use the remittance basis of taxation. Broadly speaking, this means that they are only taxed when they bring money, or assets purchased with the money, to the UK. For more background on these terms, see the Domicile, Deemed domicile for income tax and capital gains tax (2017/18 onwards) and Remittance basis ― overview guidance notes.

Prior to the 2013/14 tax year, if the individual was UK resident and domiciled but not ordinarily resident in the UK, they could also access the remittance basis. Although this concept was abolished from 6 April 2013, under transitional rules the taxpayer might still have been able to continue to access the remittance basis in 2013/14 to 2015/16 under transitional rules. See the Ordinary residence ― transitional rules (2013/14 to 2015/16) guidance note.

In some situations an individual taxed on the arising basis may receive money overseas, for instance, by crediting a bank account or selling a chargeable asset, but is unable to move the money to the UK and spend it.

As it would be unfair to tax individuals on money they cannot access, the legislation allows a claim to be made to delay the tax charge until

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

Notices of coding

Notices of coding are the means by which HMRC notifies both the employee and the employer of the tax code to be applied to the employee’s earnings. There are several types of coding notice, as detailed below. Only one of these types of notice, form P2, is sent to the employee, the others are sent to

14 Oct 2021 19:45 | Produced by Tolley in association with Vince Ashall Read more Read more

Working rule agreements

Working rule agreements are used in the construction industry and similar areas. They are national agreements made between trade unions and employers across the country, setting out the terms and conditions that apply to particular categories of hourly paid manual workers. The workers concerned are

12 Jan 2022 13:30 | Produced by Tolley Read more Read more

Special rate pool and long life assets

Special rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool consists of expenditure incurred

25 Oct 2021 07:02 | Produced by Tolley Read more Read more