Remittance Basis: Exemptions: Business investment relief

I know that a remittance basis UK resident can choose to use BIR to take his overseas asset to invest in the UK to exempt to pay tax even he is under remittance basis provided that such investment meets the qualified items under BIR. My question is: i refer to https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm34345 and it states that "a business of generating income from land. This will include profits arising from the renting or leasing of land or property.", then whether the investment mainly invests in UK residential properties under buy-to-let basis is qualified under BIR? Thank you!

Hi,

The relief you refer to is a relief alowed against Capital Gains Tax arising on the sale of a property, it is not available against income from letting a property. 

Thank you.

maybe I need to elaborate more about my question. I know the income generated under letting a property need to pay tax, I have no problem on this issue. My question is: Not all businesses can be qualified under BIR, simply, if a business is NOT qualified under BIR and a UK resident under remittance basis remitted money from overseas to UK, then such money will be taxed (remittance basis). Otherwise, if a business is qualified under BIR, then such money will not be taxed (remittance basis). So I want to know whether "renting or leasing of land or property" is a business qualified under BIR or not? Thank you!

Hi VP

The types of business that qualify are listed here RDRM34330 - Remittance Basis: Exemptions: Business Investment Relief: Qualifying investments - overview
and renting/leasingof land/property does not meet the conditions to qualify under BIR.

Thank you

thank you for your quote. I have read all before i raised my first question. Again in HMRC web related to BIR (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm34345) it stated that trade includes a business of generating income from land. This will include profits arising from the renting or leasing of land or property. The extension of the definition of trade to include generating income from land and research and development activities only applies for business investment relief purposes. It does not change the definition of trade for other tax purposes. (s809VE ITA2007) which is different interpretation with your previous response. Please advise.

Hi,

Under the link you have given, the property income has to be a commercial trade in order to meet this. See also below for the definition of a trade.

BIM20060 - Meaning of trade: general: definition

If you are renting out a residential property then this is not a trade and does not qualify for BIR.

Thank you.

Under this link https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm34380, it is possible to make a request in written to take an advance assurance, I have already sent a registered letter to HM Revenue and Customs, Business Investment Relief Team S1278, PO Box 202, Bootle, L69 9AL, however, post office replied that such address is not valid and HMRC has removed from this address already, thus, would you mind providing its latest address to me? Thank you!

Hi
Please send to:
HMRC,
Self Assessment,
BX9 1AS.  
Please refer to RDRM34380 in your letter and also confirm that your letter was returned by the Post Office when you sent it to the address on the
Gov.UK website.  
We will then send it internally to the correct department.