Who can access the remittance basis (pre 2013/14)?

The rules on remittance changed:

1. •

   from 6 April 2008, when it became both more complex and more expensive to utilise the remittance basis

2. •

   from 6 April 2013, as the abolition of the concept of ordinary residence meant that certain people who had been able to use the remittance basis were no longer able to do so (subject to transitional rules)

3. •

   from 6 April 2017, when the concept of deemed domicile was introduced for income tax and capital gains tax

Most people in the UK are taxable on their worldwide income and capital gains on an arising basis. This means that income is taxable when it is paid to the individual or put at his disposal, for instance, by being credited to a bank account. Gains are usually taxable when the disposal occurs. If the individual is taxable on the arising basis, he must declare all his overseas income and gains in the tax year in which it arises, even if it is not brought into the UK.

However, certain individuals are taxable in the UK on their UK income and gains alone and pay UK tax on foreign income and gains only if these are remitted (brought) to the UK. This is the remittance basis of taxation. The following people qualify for the remittance basis:

1. •

   UK residents and non-domiciliaries (these people have always been able to access the remittance basis) *

2. •

   UK residents and those not ordinarily resident (up to 5 April 2013, although these people might have been able to continue to access the remittance basis in 2013/14 to 2015/16 under transitional rules)

* From 2017/18 onwards, the UK resident non-domiciliary must also be not deemed domiciled in the tax year to be able to access the remittance basis.

This guidance note covers who can access the remittance basis from 6 April 2008 until 5 April 2013. For the earlier rules and transitional provisions, see RDRM36000–RDRM36470.

For commentary on the earlier rules, please click here for the