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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

From
HM Revenue & Customs
Updated
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Remittance Basis: Identifying Remittances: Condition C - Gift Recipients: Gift recipients - definition of

Condition C is concerned with the remittance of an individual’s foreign income or gains by, or through, a gift recipient.

A ’gift recipient’ is a person, other than a relevant person to whom the individual makes a gift of money or other property that

  1. is income or chargeable gains of the individual, or
  2. derives (wholly or in part, and directly or indirectly) from income or chargeable gains of the individual’ (ITA07/s809N(2)).

So if an individual remittance basis user makes a gift RDRM33250 of:

  • money, that is itself his or her untaxed foreign income or gains
  • other property that was bought using untaxed foreign income and gains, for example a motor car purchased out of his or her foreign chargeable gains, or as shares in an offshore company purchased from his or her untaxed foreign income and gains
  • money or other property that is in any way derived from untaxed foreign income or gains, for example proceeds from sale of shares in an offshore company originally purchased using relevant foreign earnings, or a work of art originally purchased offshore using untaxed foreign chargeable gains

to another person who is not a relevant person, that other person is a gift recipient.