Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 14 Apr 2022 02:52:50 GMT by olkelvin wong
Hi, I have some offshore bank A/C, which hold money I earned before I went to UK. From my understanding, they are treated as Clean Capital. And I’m allowed to remit them to UK anytime without any tax liability. There is no time limitation for exemption on remittance tax, right? Although I did not deposit any money into those A/C onwards (after I arrived UK), there are some interest income generated from those bank A/C, just small amount of money. And I had reported the lump sum of interest income earned in those A/C to HMRC on annual basis. I’m not sure, if those A/C will be treated as Mixed Capital and I will be taxable when I want to remit money to UK later on? Or, they are still treated as Clean Capital, because of the annual declaration of interest income (for income tax) to HMRC already and will not be taxable for any money remittance? Thanks so much for your kind assistance.
Posted Fri, 22 Apr 2022 14:27:49 GMT by HMRC Admin 11
olkelvin wong, 
Thank you for your patience in awaiting a response. 
The remittance basis is an alternative basis of taxation for a tax year for a UK resident who is not domiciled in the UK. Earnings and gains made prior to a tax payer being resident in the UK will not be subject to a remittance basis charge.
There is no specific guidance, but the below gives the basics:
RDRM31030
Thank you. 
Posted Mon, 13 Jun 2022 01:42:39 GMT by olkelvin wong
Dear Sir / Madam, Sorry, I don't really understand...so, you mean even I want to transfer money from my OFFSHORE bank a/c into UK LOCAL bank a/c ANYTIME, provided that the money was earned BEFORE I become the UK resident, they are NOT subject to tax? Or, the non-taxable money only limited to the money saved in UK LOCAL bank a/c at the first date I enter UK? Any ONWARDS money from OFFSHORE bank a/c are taxable (even they are earned prior to be UK resident)? Thanks!
Posted Tue, 14 Jun 2022 07:46:17 GMT by HMRC Admin 19
Hi,

You can see guidance here:

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.

You must be signed in to post in this forum.