RDRM32250 - Remittance basis: accessing the remittance basis: long term UK residents: dual residents - treaty non-resident
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.
It is possible for individuals to be resident both in the UK and in another country or countries in a tax year. In such a case we look to the provisions of existing Double Taxation Agreements (DTAs) to determine in which country the individual is resident for treaty purposes. So a person may be resident in the UK under UK law, but regarded as 바카라 사이트˜treaty resident바카라 사이트™ elsewhere and consequently treated for tax purposes as 바카라 사이트˜not resident바카라 사이트™ in the UK.
Individuals who, under the terms of a DTA, are resident in the other country or territory but are also a long-term resident (see RDRM32200) in the UK, and are claiming the remittance basis, will be liable to pay the remittance basis charge if their un-remitted foreign income and gains are £2,000 or more.
In determining the number of years in which an individual has been resident in the UK for the purposes of the long-term resident provisions, you count all years where the individual is resident in the UK under UK domestic law even if the individual was treaty resident in another territory in some or all of those years.
In most cases, an individual resident both in the UK and in another country and who under the Double Taxation Agreement with the other country is treated as resident in that other country (for the purpose of applying the provisions of the DTA), will be chargeable to tax in the other country on income and gains that originate in that other country and not in the UK. The treatment of any income and gains that originate in third countries (not the UK or the country of treaty residence) will depend upon the terms of the DTA between the UK and the country of residence.
Where, exceptionally, an individual is chargeable to tax in the UK on such income or gains, they will need to consider whether a claim for the remittance basis of taxation is in their best interests or if, instead, they should pay tax on the arising basis and in the usual way, claim a credit for the tax charged in the other territory.