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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Remittance Basis: Exemptions: Business investment relief: Failure to invest within 45 days (s809VB ITA2007)

Where money or other property is brought to the UK for the purpose of making a qualifying investment [see RDRM34340], and no qualifying investment is made within 45 days, a taxable remittance of the amount not invested would occur. However, if the money or other property is taken offshore within the 45 days, beginning with the day on which it was originally brought to the UK, no remittance will occur.


On 20 August 2012 Tariq brings £300,000 of his foreign income to the UK which he invests in Hassan’s eligible trading company [see RDRM34345] and makes a valid claim to relief. The company trades successfully and decides to expand.

Tariq decides to invest more of his foreign income in Hassan’s company so on 22 March 2013 he brings in a further £250,000 of his foreign income to the UK. However, before Tariq makes the investment Hassan tells him that he has failed to secure funding from other investors to proceed with the expansion of the company, which has now been indefinitely delayed. Tariq decides not to go ahead with his investment.

On 4 April 2013 Tariq transfers his £250,000 back to his offshore account. As he removed his foreign income offshore within 45 days of bringing it to the UK and can evidence his intentions to make a further qualifying investment, there is no taxable remittance.

Tariq’s original investment of £300,000 continues to qualify under the business investment relief provisions.  

If, following an abortive investment, only part of the income or gains brought to the UK is taken offshore within the 45 day period then the part treated as remitted is to be determined on a just and reasonable basis, taking the facts of the case into consideration. (s809VB(3) ITA2007)