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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

HM Revenue & Customs
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Remittance Basis: Introduction to the Remittance Basis: Transitional Provisions: Relevant foreign income arising prior to 6 April 2008 remitted after 5 April 2008

Paragraph 83(1) and (2) Schedule 7 Finance Act 2008


Following the introduction of ITTOIA 2005 for the tax years 2005-06 onwards, individuals who were not ordinarily resident (NOR) and/or non-domiciled (ND) usually needed to make a claim for the remittance basis of taxation to apply in respect of their relevant foreign income RDRM31140, that is income taxed under ITTOIA05/s831.

For tax years before 2005-06, ICTA88/s65(5) applied the remittance basis to any foreign income taxable under Case IV and V of Schedule D.


The transitional provisions apply ITTOIA05/s832, as amended by Finance Act 2008, as if the individual had made a claim under ITA07/s809B for the remittance basis of taxation to apply for the relevant year.

The above also applies where the remittance basis is, or would have been, due without the need to make a claim (ITA07/s809D and s809E).


This ensures that foreign income that arose in tax years prior to 2008-09, and to which ITTOIA05/s831 or ICTA88/s65(5) applied is taxable when remitted to the UK after 6 April 2008 under the rules provided at Chapter A1 Part 14 ITA 2007, even if the individual does not choose to use or claim the remittance basis under the new rules in 2008-09 or later tax years.

This applies whether the source from which the income arose is in existence at the time the income is remitted or not.

Note: This transitional provision applies only to relevant foreign income. That is because the pre 6 April 2008 position for employment income and capital gains was different. These amounts were always chargeable on the remittance basis if the individual met the appropriate NOR or ND status requirements.