Tax filing on remittance basis

Hi! I am a UK resident but non-dormciled. I do not have UK income. I have foreign income which I have not remitted to UK. In such case, do I need to file a tax return? I read somewhere that I don't need to. Separate question. If I remit the money to and for use in UK, will I only be taxed for the income or gain arose from that particular tax year disregarded any income or gain arose in previous tax years which I did not remit any fund to UK?

Hi Helena Tse,
You will need to complete a Self Assessment Tax return (SA100), in order to claim the 'remittance basis'.  
You will also need to complte SA109, boxes 28 to 40, to declare the unremitted income.
Any unremitted income from a previous year, that is remitted to the UK in a later year, will be subject to tax in that later year.  
Individuals can decide on a year by year basis whether to use the remittance basis. If they choose not to use the remittance basis the arising basis will apply.
Foreign income and gains are remitted to the UK if: 
- they are brought to, or received in or used in the UK refer to:
RDRM33100 - Remittance Basis: Identifying Remittances: Conditions A and B: Contents
- a service is provided in the UK which is paid for overseas using foreign income or gains (refer to RDRM33100)
- they are used overseas in respect of a relevant debt in the UK.
In simple terms a relevant debt is a debt that relates to property brought to or used in the UK, or a service provided in the UK refer to:
RDRM33160 - Remittance Basis: Identifying Remittances: Conditions A and B: Condition B - relevant debt
Guidance on the remittance basis can be found at section of :
Residence, domicile and the remittance basis: RDR1
Thank you. 

Thank you for your reply. Just want to clarify the above. So I will need to file SA100 and SA109 even I have not remitted any foreign income or gain to UK during the tax year? Regards, Helena

Hi,

Yes, completion of the SA100 and SA109 would still be required.                    

Remittance basis 2021 (HS264)   

Thank you.

Hi! I have read the Guidance note for RDR1, and in particular note 9.27 which stated: 9.27 Normally, if you want to claim the remittance basis, you’ve to complete a Self Assessment tax return. There are 2 exceptions to this which you will need to consider. The first is explained in paragraph 9.15. The other exception is when the following circumstances apply. You: - are a non-domiciled UK resident for that tax year - have no UK income or gains in the tax year (other than taxed UK income of less than £100) - make no remittances of foreign income and gains during the tax year - have been a non-domiciled UK resident for fewer than 7 of the previous 9 tax years, or are aged under 18 throughout the whole of the tax year - are not required to complete a Self Assessment tax return for any other reason In my case for tax year 2021/22 and 2022/23, I have met all the conditions above being: I am no dorm; I have no UK income or gain; I have not remitted any foreign income or gain during the tax year; I have been non dorm for fewer than 7 years; and I am not required to complete Self Assessment tax return for other reason. In this case, I am not required to complete self assessment tax return for both 2021/22 and 2022/23. Please advise if my understanding is correct. Kind regards, Helena

Hi Helena Tse,

On the basis of the information you have provided, your understanding of the guidance is correct, and you would not be required to submit 2022 and 2023 self assessment tax returns.            Remittance basis 2021 (HS264)

Thank you.

Hi HMRC I just want to clarify for SA109 form, under Box 34 - amount of income you are nominating - Assuming that I am claiming remittance basis, if I have foreign unremitted income of GBP28,000 for example, I should enter 28,000 into Box 34. And then give details of the breakdown of 28,000 in Box 40, Say Bank A - 14,000 and Bank B - 14,000 If the above is correct, I am then confused by the statement - The Remittance Basis Charge (RBC) is IncomeTax, Capital Gains Tax, or a combination of both, charged on unremitted foreign income or gains on the arising basis. When you pay the RBC you must tell us on what income or gains the RBC is chargeable by nominating the appropriate income or gains. You do this by putting theamount of nominated income in box 34. I currently do not need to pay RBC. But the above statement appears to suggest that you only need to put the unremitted foreign income figure if and when you need to pay RBC. I read a few threads from the community and it is not very clear what I should put in box 34 under my circumstances. Many thanks

Hi
Detailed guidance on the Remittance Charge, and the unremitted income you should nominate in Box 34, is provided at RDRM32210.                Remittance basis: accessing the remittance basis: long term UK residents: long-term residents and the remittance basis charge - overview       

Hi HMRC Thank you for the link provided, unfortunately I was not trying see if I need to pay RBC. My main question is: assuming I Do Not need to pay RBC and I am claiming remittance basis, with foreign unremitted income of GBP68,000, I should the full amount 68,000 into Box 34. And then give details of the breakdown of 68,000 in Box 40, Say Bank A - 34,000 and Bank B - 34,000 Please confirm if my above understanding is correct. Apologies I did not make my question clear before. Many thanks for your help.

Does it means that ONLY those part of foreign income that the taxpayer consider WOULD bring into UK SOME DAY LATER need to be "Nominated" and fill in Box 34??? Other part of the foreign income that the taxpayer consider would NEVER remit into UK can then be excluded from Box 34??? For those amount filled into Box 34, does it mean that the HMRC will immediately tax on it in the current tax year???

Hi robertlam,
Box 34 is the total of the unremitted income and box 40 is a breakdown of the summary figure in box 34, as you suggest in your example.
Thank you. 

Hi Kelvin,

Box 34 is for the income that you choose not to remit to the UK in that tax year (box 35 for capital gains). A breakdown of the income and gains, is provided in box 40. All other income is declared for tax purposes.  

If you never remit the income and gains to the UK, then it will never be taxable. However, if you remit the income/gains to the UK in a future tax year, the income and gains will be taxable in that future tax year.

Thank you.

Thanks Admin 32, I now understand the use of Box 34. Please advice if we need to state in Box 40 the amount of taxable remittances (including say living costs in UK paid by overseas bank credit cards) which we have already made during the 2022/2023 year?? Is it ok for me now, that, I then send another copy of REVISED SA109 to HMRC to supercede the ones I sent last week?? (For I sent to HMRC last week with all my SA100, SA102, SA106 and SA109) Thank again

I now understand the use of Box 34. Please advice if we need to state in Box 40 the amount of taxable remittances (including say living costs in UK paid by overseas bank credit cards) which we have already made during the 2022/2023 year?? Is it ok for me now, that, I then send another copy of REVISED SA109 to HMRC to supercede the ones I sent last week?? (For I sent to HMRC last week with all my SA100, SA102, SA106 and SA109) Thank again

Hi Kelvin HO,

Per the guidance for box 40 - Please put any additional information in this box, for example, any: 
•     nominated income or gains 
•     UK Gift Aid donations 
•     double taxation relief claims 
•     remitted nominated foreign income or gains (in excess of £10) during the 2022 to 2023 tax year, that cover more than 1 tax year 
•     investment that no longer qualifies for relief 
•     details of remitted foreign income or gains if you are deemed UK domicile 
•     income received from shares or securities in a non-UK company that are treated as shares or securities in a UK company because of 
      an exchange taking place on or after 17 November 2022 
If you have already sent in your return, you can now advise of  this additional information in letter form

Thank you

With regard to the Guidance notes and in particular Section 9.27 which states: Normally, if you want to claim the remittance basis, you’ve to complete a Self Assessment tax return. There are 2 exceptions to this which you will need to consider. The first is explained in paragraph 9.15. The other exception is when the following circumstances apply. You: - are a non-domiciled UK resident for that tax year - have no UK income or gains in the tax year (other than taxed UK income of less than £100) - make no remittances of foreign income and gains during the tax year - have been a non-domiciled UK resident for fewer than 7 of the previous 9 tax years, or are aged under 18 throughout the whole of the tax year - are not required to complete a Self Assessment tax return for any other reason Which all apply to me - Is there any upper limit on the amount of Foreign Income received outside of the UK which is NOT remitted to the UK in that tax year before I have to submit a self assessment return

Hi,

There is no limit. If any foreign income is remitted to the UK and you are claiming the remittance basis, you need to report this.

Thank you.

Hi HMRC Admin, I notice from the previous chat, HMRC Admin 32 saying that Box 34 is for the income that you choose not to remit to the UK in that tax year. But I find that : "Nominated income and gains are taxed as if the remittance basis did not apply to them (ITA07 s809H(2)) ". If I put the un-remitted income into Box 34, the amount will be taxed, won't it? As the purpose is not to have the amount taxed, why should one put any un-remitted amount there in Box 34? If I don't need to pay any charge for using remittance basis, should I just put "0" in box 34?

Hi,

It depends on the amount, please refer to the following guidance:

Remittance basis changes

Remittance basis 2024 (HS264)

Thank you.