Report foreign income for remittance basis

Dear Admin, If I choose to be taxed on the remittance basis, do I still need to complete the Foreign section in my Self Assessment? Or do I report only those foreign income that I remit into the UK? Thank you very much for your help.

Hi Joe Fong,
Please refer to guidance here:
Remittance basis 2023 (HS264)
Thank you. 

Dear Admin, Unfortunately after carefully reading through the Remittance basis 2023 (HS264) guidance, I am still not sure about it. Would you please confirm if I need to report any unremitted foreign income if I am taxed on the remittance basis? Thank you.

Hi,

In the UK, the standard is to be taxed on your worldwide income on the arising basis, by completing a Self Assessment tax return, regardless of whether you remit it to the UK or not.  

If you choose to apply the remittince basis instead of the arising basis, you would not pay tax on the foreign income you do not bring into the UK. You wouild declare the income in the residence section as unremitted. You would pay tax on all the other income.  

If you are still uncertain about this, you should consider seeking the advice of an accountant or professional adviser.

Thank you.

Dear Admin, I have foreign saving interest in 2 countries outside UK. I am applying for remittance basis and the HS264 is not very clear on how to fill up SA106. It said reported the remitted amount in F2 and F3(of SA106). The Foreign notes of SA106 for 7.1 and 7.2 say: Fill in columns A to F. If you have income from more than one country, include separate sheets completing columns A to F and attach to the ‘Foreign’ pages. Add up the figures in column D and put the total in box 7.1..Add up the figures in column F and put the total in box 7.2. Since only the section:" interest and other income from overseas savings" have the complete A to F to fill up, but not the "Remitted foreign savings income" section, should I fill up the remitted saving interest of this tax year in the former section, and any remitted from previous tax years in the latter section? Is the section "interest and other income from overseas savings" for income of this tax year, and the section "Remitted foreign savings income" for previous tax years only? Or the section" interest and other income from overseas savings" is for arising basis use, any remittance basis saving income should come under the row "Remitted foreign savings income" only? Should the amount under box 7.2 of F3 (SA106) be included in box 4? Would the amount under box 7.2 be doubly taxed then? Thank you.

Hi,

The remittance basis is applied for by using SA109, where you declare the amount of unremitted income for the tax year, box 34, captial gains, box 35, and the type and breakdown of unremitted income / capital gains, box 40. You can see guidance here: 

Resideence, remittance basis etc (2024)

If you are remitting, previously unremitted income, and, or capital gains in a later tax year, then you would declare this in SA106, foreign, or another relevant supplementary page. You can see guidance on the remittance basis here:

Residence, domicile and the remittance basis: RDR1

Thank you.

Thank you for your response. I have read those guidance before and it is only my first year of being a UK tax resident ever with no charge required for using remittance basis and do not need to nominate any income. I also notice that the notes for box 40 of SA109 said that it is the details of nominated income that needs to be entered, not that of unremitted income. Somewhere in the HMRC forum, there was at least one HMRC admin said that unremitted income does not need to be entered in the self assessment (the guidance asks to enter the remitted part only), but of course the foreign banks will notify the UK gov of the foreign income. My previous question is mainly on the filing of SA106 on page F2 and F3 Is the section "interest and other income from overseas savings" for income of this tax year, and the section "Remitted foreign savings income" for previous tax years only? Or the section" interest and other income from overseas savings" is for arising basis use, any remittance basis saving income should come under the row "Remitted foreign savings income" only? If the first scenario is true, although I am using remittance basis, those remitted interest income of this tax year should be entered under "interest and other income from overseas savings". If the latter is true, it should be entered under "remitted foreign saving income", whether it is interest income of this tax year or previous tax year. Or I need to repeat the amount in both section and repeat the amount entered in box 4 also in box 7.2? I have read the notes of SA109, SA106, HS264 and they are not very clear on how the amount should be filed. Thank you.

Hi, If my money is remitted to a bank in Jersey, would it be regarded as remittance to UK?

Hi CH
No it would not.

Hi Sam Lee,

Box 40 of SA109 is used to break down into greater detail, the figures entered in boxes 34 and 35, which is the unremitted income and captital gains that you are nominating when you apply for the remittance basis. You can see guidance here:

Residence, remittance basis etc notes 

If you remit foreign income and capital gains to the UK, you declare this on a SA106 for dividends, interest and property income amongst others, SA102 for employment, SA103 for self employment income and SA106 for capital gains.

Thank you.

I am a professional adviser and agree with the queries on this page that there is a lack of clarity from you HMRC. You suggest that where the remittance basis is being applied for but no remittance has been made that Boxes 34 ( income),35(gains ) and 40 are used BUT The NOTES to SA109 state that boxed 34 and 25 are used for nominating income and gains for RBC and that is NOT relevant here so is it Box 40 only ?

Hi ,
 

The guidance notes for SA109 (:  Residence, remittance basis etc notes  ) advise that 'you must fill in boxes 34 and 35 if you’ve put ‘X’ (only) in boxes 28 (claim for remittance basis), 31 (If you were UK resident of 12 of the past 14 years) or 32 (1f you were UK resident of 7 of the past 9 years)'.  Box 40 is used to show a breakdown of these values.  The figues in boxes 34 and 35 are not included in any calculations, but are a record of what was unremitted as shown in box 40. Thank you .