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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Remittance basis: introduction to the remittance basis: overview of the remittance basis regime: effects of using the remittance basis

With a few important exceptions (refer to RDRM32100 Exceptions to the claims requirements) individuals who use the remittance basis from 6 April 2008:

  • lose their entitlement to UK personal tax allowances (PAs) RDRM32040 for income tax purposes
  • lose their Annual Exempt Amount (AEA) RDRM32040 for capital gains tax purposes.
  • have to make a claim to use the remittance basis

In addition some remittance basis users who are regarded as ‘long-term’ UK residents (refer to Long term residents RDRM32200) may have to pay the Remittance Basis Charge (RBC) of either £30,000, or £50,000.

For further information on all of these provisions refer to the relevant subject headings in RDRM32005 - Claiming the remittance basis