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Posted Thu, 27 Apr 2023 23:49:42 GMT by
I currently have GBP savings in a Channel Islands bank account that will be taxable if I remit these funds to the UK (the income which was the source of these savings was not taxed as I claimed the remittance basis of taxation but will become taxable if I remit the funds to the UK). I am looking at either spending this money in GBP or transferring the funds to another currency such as AUD using a low-cost transfer service - in both cases I would like to ensure the funds are not remitted to the UK for taxation purposes. Two queries: 1. If I use these GBP funds to purchase non-UK accommodation (e.g for a holiday in Spain) from a UK-based company or website (paying in GBP) will this count as a remittance to the UK? 2. My partner set up an Australian bank account with Revolut. As part of Revolut's services, they can accept and hold GBP funds as part of this account and Revolut have provided a UK sort code and account number for the purpose of receiving GBP funds. If I transfer the GBP funds from the Channel Islands to my partner's Revolut bank account (using the UK sort code and account number that Revolut provided) will this count as a remittance to the UK even though this service is offered as part of the opening of an Australian bank account with Revolut? I note that the funds would immediately be transferred to AUD using Revolut's foreign currency conversion but they will for a short time exist in the GBP account.
Posted Fri, 05 May 2023 09:44:08 GMT by HMRC Admin 25
Hi Justin,
Commonly foreign income and gains are ‘remitted to the UK’ if they (or something deriving from them) are:
brought to, or received in, or used in the UK by you or another relevant person
brought to, or received in, or used in the UK for your benefit or that of another relevant person
used to pay for a service provided in the UK to you or another relevant person
used to pay for a service provided in the UK for your benefit or that of another relevant person
used outside of the UK for a relevant debt in the UK
A remittance will not only occur if you remit the actual or original foreign income and gains to the UK.
You will also make a remittance if you remit something that derives from them to the UK.

Thank you. 
 

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