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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 section 809E ITA 2007

Paragraph 85 Schedule 7 Finance Act 2008


ITA07/s809E provides that some individuals may use the remittance basis without the need to make a claim, that is, without the need to file a self-assessment tax return. This applies where that individual has no UK income or gains and does not remit or otherwise use any foreign income or gains in circumstances where a taxable remittance would take place. That is, their self-assessment tax return would contain only their claim to be taxed on the remittance basis. Refer to RDRM32100 Exceptions to claim for the full conditions.

Relevant foreign income and gains for this purpose are defined at s809E(3) as:

  • foreign income and gains for the tax year for which section s809E is being applied, and 
  • foreign income and gains for every other previous tax year for which the remittance basis applies because either 
  • the individual has made a claim for the remittance basis to apply under s809B RDRM31020 or
  • the individual was entitled to use the remittance basis under either s809D RDRM31020 or s809E RDRM31020 


As sections 809B, 809D and 809E apply only from 2008-09, the transitional provision ensures that foreign income and gains that arose in years prior to 2008-09 are also taken into account when determining whether there has been a remittance in the year under review, and thus in determining whether the remittance basis can be used under s809E.

The transitional provision does this by including in the definition of ‘relevant foreign income and gains’ at s809E(3)(b) any foreign income and gains that arose in tax years up to and including 2007-08, in years during which the individual was UK resident but not domiciled or not ordinarily resident.

The one exception is for any relevant foreign income for any year in which the individual did not make a claim to use the remittance basis under ITTOIA05/s831 (also refer to RDRM31430Transitional Provisions: Relevant Foreign Income) or ICTA88/s65(5) did not apply, and so their relevant foreign income was chargeable on the arising basis.


Foreign income and gains from years up to and including 2007-08 to which the remittance basis applied may be taxed as a remittance if remitted to the UK on or after 6 April 2008. Any remittances of such foreign income and gains in any tax year from 2008-09 onwards are taken into consideration in deciding whether the remittance basis can be used without claim under s809E.