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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Remittance Basis: Introduction to the Remittance Basis: Transitional Provisions: Chargeable gains accruing prior to 6 April 2008 remitted after 5 April 2008

Paragraph 84 Schedule 7 Finance Act 2008


Prior to the introduction of Chapter A1, Part 14, ITA 2007, it was not necessary for an individual who was resident in the UK but who was not domiciled in the UK to make a claim to be taxed on the remittance basis in respect of gains accruing from the disposal of assets situated outside the UK. That is because TCGA92/s12 provided that the default basis of taxation was the remittance basis in respect of these gains.

Chapter A1 provides that from 2008-09 the remittance basis applies only if the individual chooses to use it.


The transitional rule provides that capital gains for years prior to 2008-09 continue to be taxable when remitted by applying TCGA92/s12, 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.

Provision is made to ensure that the change to the temporary non-residents rules in TCGA92/s10A do not apply to any part of the gain remitted to the UK in tax year 2007-08 or any earlier year. See the Capital Gains Manual for more information.


This ensures that chargeable gains from tax years prior to 2008-09 are taxable when remitted to the UK after 6 April 2008. Also, chargeable gains of earlier years are taxable even if the individual does not choose to use or claim the remittance basis under the rules at ITA07/Chapter A1 in 2008-09 or later tax years.