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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

Remittance basis: amounts remitted: simplification of the treatment of nominated income - ITA07/s809I

If a long term UK resident taxpayer claims the remittance basis and pays the Remittance Basis Charge they are required to nominate some of their foreign income or gains (s809C ITA 2007).

Where a taxpayer;

  • remits any of their nominated income or gains, and

    • has other foreign income or gains that have not been taxed in the UK because the remittance basis applied in the tax year that they arose, and
    • which have not subsequently been remitted to the UK

there are rules that determine what part of the unremitted income or gains are deemed remitted to the UK for tax purposes in place of the nominated income or gains actually remitted (ITA07s809I and ITA07/s809J). More information can be found in RDRM35100.

The simplification applies from 6 April 2012. From tax year 2012-13 onwards an individual can remit nominated income up to £10 for any tax year for which a nomination has been made without becoming subject to the identification rules. (The identification rules are explained at RDRM35130). (ITA07/s809I(1)(c), (5) and (6))


In 2012-13 Rozalia nominates £15 of her foreign bank interest for the purposes of the remittance basis charge. She remits £5 of that interest to the UK in February 2015. The amount of nominated income and gains from 2012-13 remitted is less than £10, so the remittance does not trigger the identification rules. As the interest has already been taxed in 2012-13 no further tax is due on the £5 remittance.

In May 2015, Rozalia remits the balance of £10, from the income she nominated in 2012-13. The cumulative total of nominated income and gains remitted to the UK from 2012-13 now exceeds £10. Rozalia will have to apply the identification rules to determine what she has remitted to the UK for tax purposes in 2015-16.

The identification rules apply even though Rozalia has only remitted £10 in 2015-16, as the simplification is based on the aggregate amount of nominated income and gains from each tax year.

The effect of the amended legislation in section ITA07/809I introduced by Finance Act 2012 is that from 2012-13 onwards, an individual who nominates £10 or less of their foreign income or gains in a tax year will not be able to trigger the ordering rules described in RDRM35110.