Foreign income, remittance basis and cryptoassets

Hi, I'm a non-domiciled resident of the UK. I claim the remittance basis. I have USD 20,000 of foreign income in an overseas bank account. I bought cryptoassets (Bitcoin, a cryptocurrency) with this foreign income from my offshore bank account (my traditional, regulated bank also provides crypto exchange and custody services). The cryptoassets are still in my offshore bank account and I have no plans to move them out of the offshore bank account or to sell them during this fiscal year. As the cryptoassets are kept on the exchange and I don't own the private keys of these assets, they are effectively an "IOU" on the assets (similar to a gold certificate, compared to physical gold). Does the mere acquisition of the cryptoassets trigger a remittance to the UK? (And if that's the case, do I need to pay income tax on the USD 20,000 foreign income?) Or are the cryptoassets still considered offshore as they're kept on an offshore account?

I forgot to add that the cryptocurrency I acquired is Bitcoin and that Bitcoin is the official currency (legal tender) of El Salvador and the Central African Republic. So I wonder whether the following would apply: “The situs of foreign currency accounts that are held by UK residents who are not domiciled within the UK are regarded as situated in the UK only if the account is maintained at a UK branch of the bank. Otherwise, the account is regarded as situated offshore.

Hi,

Please refer to guidance at:

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.

Thanks a lot. So based on the Remittance basis 2023 (HS264) guidance, in my case, the foreign income is not ‘remitted to the UK’.

Hi,
If the money is in a UK account then this will be regarded as remitted to the UK and will need to be declared.
Thank you.

Yes, but as I explained in my initial message, the foreign income was in a non-UK account and the Bitcoin bought with this foreign income is in a non-UK account as well.

Hi,

As non UK account it will be classed as offshore.

Thank you.