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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

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HM Revenue & Customs
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Remittance basis: accessing the remittance basis: long term UK residents: long-term residents and the remittance basis charge - overview

The remittance basis charge (RBC) is payable by ‘long-term UK residents’ who are aged 18 or over at the end of the tax year, and who claim the remittance basis of taxation in respect of foreign income and or gains arising in the relevant year. From tax year 2012-13 there are two levels of charge and the amount payable is determined by the number of years that the remittance basis user has been resident in the UK. (See RDRM32220)

‘Long-term UK residents’ are individuals who have been tax resident in at least seven out of the nine tax years preceding the current or ‘relevant’ tax year

The remittance basis charge is an annual charge of either

  • £30,000 for individuals who have been tax resident in at least seven out of the nine preceding tax years, or
  • £50,000 for individuals who have been tax resident in at least twelve out of the fourteen preceding tax years (from 2012-13 onwards)

Between 2008-09 and 2011-12 a single remittance basis charge of £30,000 applied where the individual had been resident in the UK in at least seven out of the nine preceding tax years.

The remittance basis charge is an additional tax charge, that is, it is paid in addition to the UK tax liability for the year on any foreign income and gains remitted to the UK.

Whatever level of remittance basis charge is payable it is paid on nominated foreign income and gains. The charge is either income tax, capital gains tax or a combination of the two.

The remittance basis charge is payable through and collected by the SA regime, and an SA tax return must be filed. The SA109 ‘Residence, remittance basis etc’ supplementary return should be completed and filed for this purpose. Also refer to RDRM32020 ‘Making a claim’.