RDRM34220 - Remittance Basis: Exemptions: Temporary importation rule - countable days

A countable day is a day, or part of a day on which property is brought to or received or used in the UK by or for a ‘relevant person’ (ITA07 s809Z4(2)).

Where property is brought to the UK under the temporary importation rule, a day is not a countable day or part of a day if:

  • The property meets the public access rule
  • The property meets the personal use rule
  • The property meets the repair rule
  • The property has been lost, stolen or destroyed (see RDRM34290)
  • The notional remitted amount of the property brought into, received or used in the UK is less than £1,000
  • All or part of the income or chargeable gains contained in the property or from which it derives is treated or continues to be treated under s809VA(2) – business investment relief, or s809Y(8)(b), s809YC(2) or s809YF(4) – exempt property relief.

Note: If the property has been lost, stolen or destroyed and is recovered, the first day after that day is a countable day. If there have been 231 or more countable days in relation to that property, then the remaining countable days must be increased to allow there to be 45 countable days; so that the individual can have the opportunity to meet Condition A (see RDRM34290).

Example

On 15 January 2010 Jez, a remittance basis user, brings a rare oil painting into the UK to hang on the wall of his castle. Jez had purchased the painting two months earlier using his foreign employment income.

On 1 July 2010 he allows the painting to be put on public display at the National Gallery, London. The painting remains on display for six months, until 31 December 2010, after which it is immediately shipped to Jez’s office in Dubai on 1 January 2011.

The conditions for meeting the public access rule for the period 1 July 2010 to 31 December 2010 have been satisfied.

Bringing the painting into the UK would ordinarily be a taxable remittance under section 809L but we need to consider the exemption rules. During the period 15 January to 30 June 2009 the painting was not available for public access. This period is immediately followed by a period of public access from 1 July 31 December 2009.

The 15 January to 30 June 2009 period falls to be considered under the temporary importation rule (167 days).

For the period 1 July 2009 to 31 December 2009 the property is exempt property under the public access rule and therefore this period does not count towards the 275 day limit