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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

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HM Revenue & Customs
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Remittance Basis: Remittance Basis up to 6 April 2008: Occasions when there may not be a remittance: Claims mechanism

For tax years 2005/06 to 2007/08 ITTOIA05/s831 required individuals to claim if they wanted to be taxed on the remittance basis. This claims mechanism meant that relevant foreign income arising in one tax year in which the remittance basis was claimed could be remitted in a later year in which the remittance basis was not claimed, and there would be no taxable remittance. This no longer applies if the remittance occurs after 6 April 2008.

Example

Rollo claimed the remittance basis in respect of his relevant foreign income for year 2004-05. He did not remit any of it to the UK in the year and consequently was not liable to UK tax on it for that year.

Rollo did not claim or use the remittance basis in respect of any of his foreign income or gains for tax year 2005-06. He remitted all his relevant foreign income that arose during 2004-05 to the UK on 31 December 2005.

As Rollo did not claim the remittance basis of taxation for 2005-06 he was chargeable on the arising basis for that year. He was therefore only chargeable on relevant foreign income arising in that year and not the income remitted in the year that arose in 2004-05.