Remittance Basis and Domicile Manual

RDRM32145 - Remittance Basis: Accessing the remittance basis: Exceptions to the claim requirements up to 5 April 2025: Deemed domiciled and less than £2,000 unremitted foreign income or gains

From 6 April 2025 it is not possible to use the remittance basis of taxation, however, any foreign income or gains that have arisen to a former remittance basis user prior to this date will continue to be taxed at the usual tax rates if they are remitted to the UK on or after 6 April 2025, subject to any amounts designated under the temporary repatriation facility (TRF) 바카라 사이트“ see RDRM71000.바카라 사이트¯

The guidance in this section only applies to tax years up to and including the 2024-25 tax year and remains for reference purposes only.

If an individual is deemed domiciled under the legislation at Section 835BA (Chapter 2 Part 14 of ITA 2007), they will still be able to access the remittance basis if they meet the provisions of section 809D ITA 2007 바카라 사이트“ under £2,000 unremitted foreign income or gains for a tax year.

This includes both individuals who are deemed domiciled because:

• they were born in the UK with a UK domicile of origin (Condition A)
• they have been in the UK for at least 15 of the previous 20 tax years before the relevant year (Condition B)

However, individuals must ensure that their unremitted foreign income and gains are under £2,000 for the relevant tax year to ensure they are entitled to use the remittance basis when they are deemed domiciled in the UK.

Example

Juan has used the remittance basis under section 809D for a number of years. From 6 April 2017 he has been UK resident for more than 15 of the last 20 tax years, and so becomes deemed domiciled in the UK, satisfying Condition B.

For the 2017-2018 tax year, as Juan바카라 사이트™s unremitted foreign income and gains is still less than £2,000, he can continue to use the remittance basis for as long as he continues to meet the conditions outlined in s809D.

However, on 15 September 2019 Juan sells his Caribbean holiday home, realising a gain of $50,000. He places the proceeds in one of his overseas bank accounts.

When completing his 2019-2020 UK tax return Juan will not be able to use the remittance basis under section 809D, because his unremitted foreign income and gains are more than £1,999. Juan will be taxed on the arising basis for the year and, even though he has not remitted any of the sale proceeds, he must declare the foreign gain on his Self-Assessment tax return.

Until his unremitted foreign income and gains reduce to less than £2,000 in a specific tax year Juan will not be able to use the remittance basis. He will be taxed on the arising basis 바카라 사이트“ the same as any other individual who is deemed domiciled under Condition B.