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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

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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 ITA07/s809Z4(3) and following provides rules that define what is not a ‘countable day’.

Any day or part of a day on which the property meets the personal use rule or the repair rule does not count towards the 275 day limit available for property under the temporary importation rule.

The day test does not apply where the notional value of the property brought into, received or used in the UK is less than £1,000.

Any day or part of a day on which the property meets the public access rule is not a countable day if any one of Conditions A to C is met.

Condition A is that

the property meets the public access rule during the whole of the period of importation in which the relevant day falls.  

Condition B is that:

(a) the property does not meet the public access rule during the whole of the period of importation in which the relevant day falls, and  


(b) that period of importation—  


(i) begins with a period of no public access, and  


(ii) ends with a period of public access which immediately follows that period of no public access.  

Condition C is that:

(a) the property does not meet the public access rule during the whole of the period of importation in which the relevant day falls, and  


(b) during the parts, or each of the parts of the period of importation during which the property does not meet the public access rule it meets the repair conditions.   

So property will only meet the repair conditions or the public access rule (ITA07/s809Z4(8)), for each period if the repair conditions or the public access rule is met for part or the whole of the first and last day of the period and the whole of each day in between.

A ’period of public access’ means a period during the whole of which property meets the public access rule (ITA07/s809Z4(10)).

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