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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: Property derived from relevant foreign income not treated as a remittance (1)

Paragraph 86(1) and (2) Schedule 7 Finance Act 2008


The introduction of Chapter A1 Part 14 ITA07 has extended the meaning and scope of foreign income and gains that become taxable when remitted to the UK. In certain situations, the operation of the previous remittance rules in respect of relevant foreign income meant that it could be brought to the UK without triggering an immediate tax charge.

As an example, if an asset such as a car was purchased abroad using relevant foreign income and the car was then brought into the UK, there would be no income or capital gains tax charge when it is brought in. Instead the charge would only occur if/when the asset was sold or otherwise realised for cash in the UK (also refer to RDRM31250 Changes to old regime - cash only).

Property consisting of, or deriving from, relevant foreign income from tax years up to and including 2007-08 may have been brought into the UK prior to 6 April 2008, and the transitional provisions deal with these situations.


The transitional position is that the new rules contained in s809L do not have effect and that property brought to the UK is not treated as a remittance where:

  • Property, including money, was acquired either directly or indirectly using relevant foreign income RDRM31140 and was brought to, received, or used in the UK before 6 April 2008.


Relevant foreign income brought to or used in the UK by the individual or any other relevant person before 6 April 2008 is not regarded as remitted under s809L after 6 April 2008 even if it is still in the UK. So in the example of the car above, even though it is still used in the UK by a relevant person on or after 6 April 2008 it will not be treated as a remittance under s809L.

Also, the same money or property can be sent or taken outside the UK and then brought in again. It will not be regarded as a remittance when brought in a second or subsequent time.

Note: This transitional provision applies only to relevant foreign income because the pre 6 April 2008 position for employment income and capital gains was different. These were always chargeable even if remitted in the form of property rather than cash.

Refer to RDRM31470 for further related transitional provisions.