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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: remittance basis charge - nomination of foreign income and gains: nomination of foreign income and gains - overview

From the tax year 2008-09 onwards, individuals must make a claim for the remittance basis under section 809B unless certain exceptions apply so that they may use the remittance basis by virtue of section 809D (see RDRM31020) or section 809E (see RDRM31020) without the need to claim.

Long term-residents (see RDRM32200) aged 18 or over, who claim the remittance basis under section 809B must pay the remittance basis charge (RBC), the amount of which will depend on the number of years that the individual has been resident in the UK RDRM32210. They must include with the claim to the remittance basis a nomination of their foreign income and/or foreign chargeable gains for that year (ITA07/s809C) on which they will pay the income tax and/or capital gains tax that will constitute the remittance basis charge.

The individual may nominate either foreign income or foreign chargeable gains or a combination of the two. Both the claim and the nomination should be viewed as component parts of the same claims process and should not be separated. Any claim that does not include a nomination is not valid.

Income tax is charged on nominated foreign income and capital gains tax is charged on nominated foreign chargeable gains for the year as if the remittance basis did not apply to the individual for the year. Nominated amounts of foreign income and gains are charged to tax on the arising basis (ITA07/s809H(2)).