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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Remittance basis: exemptions: exempt property - introduction

Property and assets that are purchased out of or otherwise derive from foreign income or gains and that are brought to the UK or used in the UK by or for the benefit of a relevant person are ordinarily a taxable remittance under ITA07/s809L(2)(a) (refer to RDRM33100 Conditions A and B - overview).

However, the legislation provides a number of exceptions to this general rule so that certain property can be remitted to the UK without attracting a tax charge under the remittance basis rules. Such property is known as ‘exempt property’ (ITA07/s809X).

There are five categories of exempt property.

They are:

  • property that 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

From 6 April 2012 under the provisions of ITA07/s809YA sales of exempt property will not give rise to a taxable remittance provided certain conditions are met (refer to RDRM34240)

Also refer to RDRM34080 Property ceasing to be exempt