RDRM34170 - Remittance Basis: Exemptions: Exempt Property - Personal use rule - clothing, footwear, jewellery or watches
The personal use rule applies to remittances involving clothing, footwear, jewellery and watches that have been acquired or that derive, directly or indirectly, from an individual바카라 사이트™s foreign income or foreign chargeable gains. These are exempt property and meet the personal use rule (ITA07/s809Z2) if:
- they are owned by a 바카라 사이트˜relevant person바카라 사이트™ RDRM33030
- they are for the personal use of
- the individual
- the individual바카라 사이트™s husband, wife or civil partner, or persons living together as if they were spouse/civil partners
- a minor child or grandchild of any of the above
Example
Stanislav, a Polish national, comes to the live in UK on 6 April 2012 and is resident for tax year 2012-2013. He goes back to Poland for a month at Christmas and whilst he is there he does some part time work for his old employer; these are 바카라 사이트˜relevant foreign earnings바카라 사이트™. With the money earned in Poland in December he buys himself a designer suit for £1,500 and matching overcoat for £1,200 in Poland which he brings with him when he returns to the UK in the New Year.
Stanislav decides to use the remittance basis in 2012-2013. The suit and the overcoat derive from Stanislav바카라 사이트™s foreign income so would be taxable as remittances when brought to the UK under ITA07/s809L, but as they are owned by a relevant person (Stanislav) and are for his own personal use, they are exempt property under the personal use rule. Stanislav has not therefore made a chargeable remittance.