Remittance Basis: Introduction to the Remittance Basis: Transitional Provisions: Relevant foreign income and offshore loans - Example 5
Jim is a UK resident non-domiciled remittance basis user who came to the UK in July 2007. He made an offer to purchase a residential property in the UK in November 2007. The deal became unconditional in February 2008 and entry to the property (completion) was agreed for 16 March 2008. Jim has an offshore mortgage the loan offer for which was made before 12 March but the funds were not transferred by the bank until 16 March.
The loan interest does not qualify under the terms of the grandfathering provisions for offshore mortgages. That is because FA08/para 90 applies only where the loan was made before 12 March 2008. This means that the money had to be in the hands of Jim (or for example in his Solicitor’s client account) before that date.