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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

HM Revenue & Customs
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Remittance Basis: Accessing the remittance basis: Remittance Basis Charge - Nomination of foreign income and gains: Payments on Account - first-year of paying RBC

The remittance basis charge is only payable from tax years 2008-09 onwards by long-term residents making a claim to use the remittance basis.

For example, if a remittance basis claim is made in 2008-09 and the remittance basis charge is due, then the first year that any payments on account can be considered in relation to the remittance basis charge is 2009-10 unless there is a claim to reduce refer to RDRM32430 Claims to reduce payments on account.

The fact that their tax liability for 2008-09 will be increased for those paying the remittance basis charge has no effect on the payments on account position for 2008-09 (unless there is a claim to reduce them) but, to the extent that the remittance basis charge is income tax, it will be taken into account when calculating payments on account for 2009-10.

The remittance basis charge for 2008-09 is not due for payment until 31 January 2010 when it can be paid as part of any balancing payment for the year.

The same principle applies to the payment on account position in relation to the remittance basis charge for any first year that a claim to the remittance basis is made, and the remittance basis charge is due. Payments on account will not generally be affected until after the first year in which they pay the remittance basis charge (TMA70/s59A(2)).