remittance switch to arising

Hi Community! Would you be able to help me with the following situation, if: 2023/2024 year was the 7-th tax year in UK, Over last 6 years remittance basis was claimed (till 2022/2023) From 2020 to 2021 was invested in a offshore fund, with redemption in 2021, the profit and initial investment in the fund never entered UK and will never enter UK. If for the tax year 2023/2024, a switch to arising is made, will there be tax to be paid on the gains from 2022 (year when remittance basis was claimed) given that those gains as well as initial investment amount will be never remitted to the UK. Thank you a lot for your help!

Hi,

Whether you are taxable on the arising basis or the remittance basis in 2023 to 2024, you are taxable on any remittances of income or gains that you make in 2023 to 2024 that arose or accrued in an earlier year in which you were taxed on the remittance basis.

Thank you.

Hi, Thank you a lot for your answer. I am correct to understand that gains made before 2023/2024 which stayed out of UK (and benefited from remittance basis regime) and will always stay out of UK, are not taxable even if there is a switch from remittance basis to arising in 2023/2024? Basically all gains made under remittance basis regime, if never brought to UK, there are no tax to pay on them? Thank you again for your help!