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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

HM Revenue & Customs
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Remittance basis: exemptions: exemptions - overview

In certain circumstances money and other property, services provided or consideration given for services that would ordinarily be regarded as remitted under ITA07/s809L (refer to RDRM33020 Meaning of remittance) are treated as not remitted to the UK, and so will not be chargeable to tax.

This applies to remittances of income and gains that are remittances because they are used:

  • to pay the remittance basis charge (RBC) as long as amounts are paid directly to HMRC from an overseas account (ITA07/s809V)
  • as consideration for the provision of certain UK services that relate wholly or mainly to property situated outside the UK (ITA07/s809W)

In addition there are several exemptions relating to property which is brought to, or received or used in the UK by or for the benefit of a relevant person is to be treated as not remitted to the UK (ITA07/s809X).

Exempt property is:

  • certain property (for example, works of art) which meets the public access rule
  • clothing, footwear, jewellery and watches which meet the personal use rule
  • property of any description which meets the repair rule
  • property of any description which meets the temporary importation rule
  • property where the notional remitted amount is less than £1000

These provisions are explained in the following pages.

From 6 April 2012, exempt property that is brought to the UK and sold may be treated as not remitted provided certain conditions are met (see RDRM34240).

Historic Note: When ITA07/s809X was originally enacted exempt property within the personal use, the repair or the temporary importation rule or where the notional remitted amount was less than £1,000 only qualified as exempt property if it was purchased using relevant foreign income. This restriction was removed in Finance Act 2009 so that from 6 April 2008 it no longer matters what foreign income or foreign chargeable gains the property consists of or derives from.