Remittance Basis: Remittance Basis up to 6 April 2008: Form of Remittance: Cheques received
If a taxpayer receives a cheque which represents taxable foreign income, before it is treated as taxable remittance it is necessary for the taxpayer to do something with it after it came into his or her hands.
For example, the cheque might be:
- Credited to a UK bank account
- Exchanged for cash (through a bank or otherwise)
- Accepted by a third party in settlement of a debt owed by the taxpayer
- Given away to a relative
A taxable remittance is not made if a cheque is received in the UK but is then sent abroad and credited to a bank account which the taxpayer has overseas.