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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Remittance Basis: Introduction to the Remittance Basis: Transitional Provisions: Relevant foreign income and the temporary non-residents rule

Paragraph 83(4) Schedule 7 Finance Act 2008


New rules were introduced at ITTOIA05/s832A that applies to individuals who:

  • were resident in the UK
  • had relevant foreign income in that tax year
  • used the remittance basis of taxation to defer their liability to UK tax on that income
  • became temporarily not resident in the UK
  • remitted that foreign income to the UK during the year or (years) that they were not resident
  • return to live in the UK within five tax years of the date of their departure

that result in the income from the years in which they were resident/remittance basis users being taxable in the year in which the person returns to the UK and is once more resident for tax purposes. Refer to RDRM32500 Temporary Non-Residents for further details.


The transitional rules provide that the new rules for temporary non-residents do not apply to relevant foreign income remitted in tax years up to and including the tax years 2007-08.


Johan is not-resident in 2007-08 but meets the residence requirements in s832A when he returns to the UK in 2008-09.

He has £6,000 of relevant foreign income from 2006-07, a year in which he was resident and had claimed the remittance basis under ITA07/s831.

In 2007-08 he remits all of this relevant foreign income to the UK to meet certain ongoing UK financial commitments.

This transitional provision means that Johan will not be taxed in 2008-09 (the ’year of return’) in respect of this remittance of the £6,000 relevant foreign income from 2006-07, although all of the ‘temporary non-resident’ conditions at ITTOIA05/s832A are otherwise met.