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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

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HM Revenue & Customs
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Remittance Basis: Introduction to the Remittance Basis: Comparisons with pre-April 2008 regime: Key differences between ‘new’ (post 5 April 2008) and ’old’ regime (pre 6 April 2008)

Prior to Finance Act 2008 there was very little legislation governing the area of remittances, and the meaning of ‘remitted’ to the UK. HMRC’s practice and approach was derived largely from case law. This has now changed as Finance Act 2008 introduced statutory definitions and rules which introduce new rules for claiming the remittance basis and provide greater definition on the issue of remittances. The previous case law is now of limited relevance.

The new rules and changes apply for tax years 2008-09 onwards. This is subject to certain transitional provisions RDRM31400 covering foreign income and gains that arose or accrued and events that happened before that.

The purpose of this section is to outline the differences between the old and new regimes to assist with the working of pre 2008-09 cases and to present an overview of situations and events that will give rise to a remittance to the UK 2008-09 onwards.

There is no single manual dealing with the remittance basis for years prior to 2008-09 instead, guidance on the taxation of foreign income and chargeable gains is located in the relevant manuals dealing with specific types of income, for example the Employment Income Manual (EIM) or the Savings and Investment Manual (SAIM), or gains, such as the Capital Gains Manual (CG). There is also some useful information in the International Manual (INTM).

Any cases of difficulty should be referred to the Specialist Personal Tax, PTI Advisory, Foreign Income and Remittance Basis Team