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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Remittance Basis: Accessing the remittance basis: Exceptions to the claim requirements: Application of remittance basis without claim - other cases (ITA07/s809E)

Individuals will be on the remittance basis without completing a self-assessment return and making a formal claim in a tax year if:

  • they are UK resident in a tax year, and
  • they are either not domiciled or not ordinarily resident in the UK for that tax year, and
  • they have no UK income or gains for that year, or they have only UK income in the form of taxed investment income (see below) of under £100, and
  • make no remittances of ‘relevant income or gains’ (see below) in that tax year, and
  • they have either been UK resident for six years or fewer of the preceding nine tax years


  • they are under 18 throughout the tax year in question, and
  • they do not complete a self-assessment return under TMA70/s8 for the tax year requesting the Arising Basis and stating that ITA07/S809E shall not apply to them.

Individuals who meet these criteria do not have to complete a self-assessment tax return in order only to claim the remittance basis. They do not lose their personal allowances or their Annual Exempt Amount.

As these individuals are either under the age of 18, RDRM32230 or else they are not long-term residents, RDRM32210 they are not liable to the remittance basis charge.

Taxed Investment Income

Taxed investment income means income from UK investments from which tax has been deducted at source. The most typical example is interest paid on by a bank or building society on a current or deposit account. It might also include certain payments of interest of annual payments made by UK companies. (ITA07/s946).

Relevant income or gains

For the purposes of ITA09/s809E, the individual’s relevant income and gains for the tax year are defined as their foreign income and gains from the current tax year, together with any foreign income and gains arising in any other [previous] tax year in which they used the remittance basis. Also refer to RDRM31400 transitional provisions.

ESC A11 may apply to an individual for the year in which they arrive or leave the UK; it effectively splits the tax year into periods of residence and non-residence and computes liability accordingly. This generally means that foreign income from the period of the tax year where the individual is treated as ‘non-resident’ is not taxed, although strictly the individual is UK resident for the whole tax year. However, even if this concession is applied, income from the concessionary ‘non-residence’ period will be included within the definition of relevant income and gains for that year for section 809E purposes.


Mr and Mrs Schmidt move to the UK from Germany in 2009-10 because Mr Schmidt is seconded here by his employers. They have been resident in the UK for three years and they intend to return to Germany in two years time. Mr and Mrs Schmidt are both not domiciled in the UK.

In 2012-13 Mrs Schmidt has no income or gains arising in the UK. She has a bank account in Germany which holds a family legacy and which pays her interest during the year. In 2012-13 she does not remit any money from that account to the UK.

Mrs Schmidt wants to be taxed on the remittance basis. As she meets all the criteria she does not need to complete a self-assessment tax return in order to claim the remittance basis.

As Mrs Schmidt meets all the criteria for ITA07/s809E to apply, if she did not want to be taxed on the remittance basis she will need to complete a Self-Assessment tax return stating this, and detailing her foreign income for 2012-13 which is to be taxed on the arising basis.

For more information about when individuals may need to complete a UK tax return please refer to Self Assessment: The Legal Framework.