RDRM32230 - Remittance Basis: Accessing the remittance basis: Long Term UK Residents: Counting years of UK residence - Minors
From 6 April 2025 it is not possible to use the remittance basis of taxation, however, any foreign income or gains that have arisen to a former remittance basis user prior to this date will continue to be taxed at the usual tax rates if they are remitted to the UK on or after 6 April 2025, subject to any amounts designated under the temporary repatriation facility (TRF) – see RDRM71000.
The guidance in this section only applies to tax years up to and including the 2024-25 tax year and remains for reference purposes only.
The remittance basis charge is only payable by long-term residents aged 18 of over.
However tax years in which the individual is under 18 are counted in determining years of residence for the ‘seven out of nine’ rule.
Example
Pranav was born on 23 October 1991. He came to the UK as a school boarder in August 2001 (tax year 2001-2002). He is domiciled outside the UK. He has stayed in education in the UK for every tax year since.
| Year | Status |
|---|---|
1999-2000 |
Not Resident |
2000-2001 |
Not Resident |
2001-2002 |
Resident |
2002-2003 |
Resident |
2003-2004 |
Resident |
2004-2005 |
Resident |
2005-2006 |
Resident |
2006-2007 |
Resident |
2007-2008 |
Resident |
2008-2009 |
Resident |
2009-2010 |
Resident |
In 2008-2009 Pranav has foreign income of £300,000 and he claims to use the remittance basis in that year. He is a long-term resident in the UK as he has been UK resident for eight years, but as he is under 18 he may use the remittance basis in 2008-2009 without paying the remittance basis charge.
In October 2009 (tax year 2009-2010) Pranav turns 18. He has foreign income of £400,000. If he wishes to claim the remittance basis for that tax year he will be liable to the remittance basis charge.