RDRM12690 - Residence: The SRT: Temporary non-residence: Remitted foreign income
Where an individual:
- uses the remittance basis
- remits relevant foreign income to the UK during the period in which they are temporarily non-resident
they will be treated as having remitted that relevant foreign income to the UK in the period of their return. This replaces and updates the existing temporary non-residence charge. RDRM32510 contains details of the rules.
Example
Marie returned to the UK during the tax year 2018-2019 after a period of residence abroad.
She originally left the UK to become resident abroad on 2 September 2013 (end of period A), and so her year of departure was 2013-2014. She had been resident in the UK for the 7 years before her departure and claimed the remittance basis in those years.
While Marie was resident abroad she remitted to the UK the following relevant foreign income (RFI):
- £15,000 RFI from 2009-2010 remitted in 2014-2015
- £18,000 RFI from 2010-2011 remitted in 2014-2015
- £18,000 RFI from 2011-2012 remitted in 2015-2016
- £20,000 RFI from 2012-2013 remitted in 2016-2017
Total £71,000
As she was not resident in the UK, this income was not taxed when remitted here.
On her return to the UK on 1 June 2018, (the beginning of the UK part of split year 2018-2019), Marie is within the special rules, because her period of temporary non-residence was less than 5 years. She will be liable to UK tax on these earlier remittances which took place when she was temporarily non-resident. They will be chargeable to UK tax in 2018-2019, the tax year of her return.