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Posted Tue, 19 Nov 2024 15:39:52 GMT by MAF75
If I have funds 1. generated by foreign income in an offshore trading/investment account 2. which have been previously treated on the remittance basis and unremitted to the UK 3. which are then used to buy UK Government gilts in the offshore trading account is the purchase of the gilts deemed to be remittance of the funds to the UK? I know the future interest on those Gilts would need to be taxed in the UK, but it not clear whether investing in Gilts would be deemed a remittance of the original income. The only examples in the guidance talk about buying shares in a UK company, not Gilts or bonds generally (so please do not point me to RDRM33000 as there does not seem to be a specific reference to gilts).
Posted Mon, 25 Nov 2024 13:46:49 GMT by HMRC Admin 17 Response

Hi ,
 
A gilt is a UK Government liability in sterling, issued by HM Treasury and listed on the London Stock Exchange.

The term 'gilt' or 'gilt-edged security' is a reference to the primary characteristic of gilts as an investment: their security.

This is a reflection of the fact that the British Government has never failed to make interest or principal payments on gilts as they fall due. 

See  (:  Gilt Market  /).

Thank you .
Posted Mon, 25 Nov 2024 14:23:33 GMT by MAF75
Hi, I am asking about the HMRC specific tax treatment of investing in gilts offshore, and whether that is deemed “bringing assets into the UK” for the purpose of remittances. Your above response instead appears to be generated by AI providing a generic description of gilt securities. I do not need information on the history of government bond markets but rather the current HMRC tax treatment of government bond Investments. Can you please answer the question I posed as it seems like it should be a fairly common scenario (large UK government bond market)? The published guidance on Bringing Assets into the UK is disturbingly vague, as it provides a limited list of examples, then says the list not complete and provides no reference to accessing a complete list. Many foreign born residents now have to deal with a massively changed situation and thus this is useful information for myself and probably others. Thanks
Posted Mon, 02 Dec 2024 11:33:24 GMT by HMRC Admin 18 Response
Hi,
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.
Posted Mon, 02 Dec 2024 14:00:51 GMT by MAF75
Your response does not answer my specific question at all but just quotes from RDRM33000, which I already mentioned I had read and does not answer the specific question. “Used in the UK” is ambiguous language in the context of trading or investing in government bond securities in a global marketplace and portfolio. The question is written as a Yes/No question, to clarify vague guidance. QUESTION AGAIN, YES/NO Is buying, not from a related party but on market, and holding UK Government bonds in an offshore investment account deemed “brought to, received in, or used in the UK” for the purpose of the remittance of foreign income and gains?

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