rdrm33060 - Remittance basis: Identifying remittances: Overview of identifying a remittance: Deemed domicile and remittances of foreign income and gains

Individuals who have previously used the remittance basis and from 6 April 2017 are deemed domiciled for UK tax purposes, will, as they do now, still have to advise HMRC of any remittances to the UK of their foreign income and gains that arose in a year in which they claimed the remittance basis.

Any remittances made in a year when an individual is deemed domiciled in the UK arising from funds that arose in an earlier year in which the remittance basis was claimed, will still be taxable in the year they are remitted to the UK.

Example

Nikki, due to the number of years she has lived in the UK is deemed domiciled from 6 April 2017. Prior to this she claimed the remittance basis for a number of years.

Nikki is offered the chance to purchase land adjoining her UK country home, and decides to take advantage of this time-limited offer. She remits the proceeds of a foreign gain which arose in 2014-2015 tax year, a year for which she claimed the remittance basis. She will have to declare this remittance on her Self-Assessment tax return, for the year in which she remits it to the UK.