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