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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

HM Revenue & Customs
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Remittance Basis: Identifying Remittances: Condition C - Gift Recipients: Gift recipients - remittances arising from enjoyment of qualifying property by relevant person

Condition C is an anti-avoidance provision that applies where an individual gives property away (usually overseas) to someone who is not a relevant person RDRM33030.

It aims to prevent a remittance basis user avoiding UK tax on foreign income and gains by giving money or other property to another person in circumstances where the property (or anything deriving from the property) is remitted to the UK in such a way that the individual, who made the gift, or any other relevant person, enjoys the gift.

The individual or a relevant person still enjoys, directly or indirectly, the gift (termed qualifying property) RDRM33260 in the UK because:

  • the qualifying property is brought to, received or used in the UK and is enjoyed by the relevant person, or
  • the qualifying property is used as consideration for a service enjoyed in the UK by the relevant person, or
  • the qualifying property is used outside the UK in respect of a relevant debt.

The remaining pages of this section explain each of these terms in more detail.

Key features of Condition C

The gift recipient RDRM33230 may include UK and non-UK residents, as well as individuals who are themselves remittance basis users

It is the enjoyment by a relevant person of the qualifying property that leads to remittance, not just the mere fact of its remittance to or use in the UK or its use in relation to services enjoyed in the UK.


Pippa, a remittance basis user, makes a gift of some of her relevant foreign income totalling £20,000 (qualifying property) to her nephew Harry (a gift recipient) who lives in Canada. Harry decides to move to Wales to study at Cardiff University and uses £12,000 to pay his tuition fees, which he pays directly to the university’s Canadian bank account, and remits the remaining £8,000 to the UK in cash to pay for his living costs.

Harry, a gift recipient, has used qualifying property as consideration for a service in the UK (the university course) and has also directly brought qualifying property to the UK (the £8,000 cash). However there is no enjoyment by a relevant person, so there is no taxable remittance under Condition C.

The ‘qualifying property’ that the gift recipient brings to the UK or otherwise applies for the benefit or enjoyment of a relevant person need not actually be the gifted property itself. It might not even be derived from the gifted property. Condition C may still apply if other property is applied for the benefit or enjoyment of a relevant person, and it is applied with reference to the gift or by way of enablement or facilitation of the gift (refer to ITA07/s809N(7)(c)). In such cases the ‘other property’ is regarded as qualifying property.

Note: Condition C uses the term ‘enjoyed by’ a relevant person rather than ‘for the benefit of’ a relevant person (as used in Condition A). In most cases there is little practical difference between the two terms.