Residence, remittence basis Box 34 – what is 'nominated income'

Hello Box 34 (and 35, 36) ask for an amount I am 'nominating'. however, I do not find any explanation/definition of what amount this refers to (also not in the explanation document https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1064072/sa109-notes-2022.pdf). Is this - the amount remitted to the UK in that tax year? - the amount gained abroad in that tax year? - something else? thank you for your reply 

Name removed.

Hi,

Please refer to further guidance here-

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

Thank you.

Hi, Yes I saw this, that but it does not explain what is to be 'nominated' or what the amount to be nominated is in- or excluding.

kind regards

Name removed  

Hi,

If you are in the position to use the remittance basis and choose not to remit the income or gains to the UK, you declare it in boxes 34 and/or 35 as the amount of income or gains not remitted to the UK. You also describe the income or gains not being remitted in box 40. Any income or gains that are not remitted to the UK in the tax year they arises, are not taxable in the UK in that tax year. The income and gains do become taxable in the UK, if they are remitted to the UK, in a future tax year. For example, foreign diviends arising in 2022 to 2023 and not remitted to the UK in 2022 to 2023 are not taxable in 2022 to 2023.  If they are then remitted to the UK in 2024 to 2025, they are taxable in 2024 to 2025.

Thank you.

i think this is not properly explained. Does Box 34 not only regard non-doms who have to pay the GBP 30.000 charge after 7 years? In general I thought foreign earning do not need to be listed anywhere (unless remitted) was my undertanding.

Hi res-non-dom Ben,
You must fill in boxes 34 and 35 if you’ve put ‘X’ (only) in boxes 28, 31 or 32. 
The Remittance Basis Charge (RBC) is Income Tax, 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 the amount of nominated income in box 34 or the nominated foreign gains in box 35.
Tell us about your nominated income and gains in the ‘Any other information’ box, box 40. 
Thank you. 

 

Hi res-non-dom Ben,
If you are resident in the UK, but not domiciled, you can elect to use the remittance basis of tax, instead of the default 'arising' basis on your world-wide income and capital gains.
If the remittance basis is used, then the unremitted income is declared on total in SA109 , in box 34, with capital gains in box 35.
Box 40 is then used to itemise the income and gains declared in boxes 34 & 35.
Anyone who is resident and domiciled or deemed domiciled in the UK, cannot use the remittance basis.
The guidance notes for boxes 34, 35 & 40 can be found here:
Residence, remittance basis etc notes
Have a look at section 9 of RDR1 for more information on remittance basis.
Guidance note for residence, domicile and the remittance basis: RDR1
Thank you. 

 

Dear Admins, I am the first year resident in the UK trying to apply for remittance basis. I found this thread by search and honestly find this part of SA109 a bit confusing too. I also read the notes multiple times but still there are some unclear spots in it. Let's read this statement: > You must fill in boxes 34 and 35 if you’ve put ‘X’ (only) in boxes 28, 31 or 32. Does it mean that I should fill in the boxes 34 and 35 if I've put 'X' in boxes 28 and either 31 or 32? Or either 28, or 31, or 32? From your explanation it sounds to me like 'either 28, or 31, or 32'. And it means that if I put 'X' only in 28, then I also should fill in sections 34 and 35. But on the other hand I'm reading the SA109 form itself and see the following (please pay notice the prompts 'you must also...'): 31. If you were UK resident for 2022–23 and for 12 or more of the preceding 14 tax years, put ‘X’ in the box – you must also fill in boxes 28, 34 and/or 35 32. If you were UK resident for 2022–23 and for 7 or more of the preceding 9 tax years, put ‘X’ in the box – you must also fill in boxes 28, 34 and/or 35 But for the section 28 there is no such an explanation (you must also fill in boxes 34 and/or 35). And it makes me think that if I'm the first year resident in the UK and choosing the remittance basis, then I only need to put 'X' in section 28 and don't need to fill in the sections 34 and/or 35. Do I understand it correctly? And if not then what is the correct understanding of these sections? Thank you in advance for your help.

Hi Kirill,
You must fill in boxes 34 and 35 if you’ve put ‘X’ (only) in boxes 28, 31 or 32.
Guidance on  how to complete the SA109  is here:
Residence, remittance basis etc notes
Thank you. 

Hi Admins, but in the notes 'Boxes 34 and 35 Amounts of nominated income or capital gains' I see the following explanation: 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 the amount of nominated income in box 34 or the nominated foreign gains in box 35. Tell us about your nominated income and gains in the ‘Any other information’ box, box 40. The statement '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.' seems to me to be meaning, that if I'm not paying RBC (because I'm the first year UK tax resident), then I don't have to give the information about nominated income. Do I understand it correctly?

Hi Kirill,
It is not clear whether or not you are claiming the Remittance Basis for 2022/23.
The notes  in the 'Residence, remittance basis etc notes' (from Box 28 onwards) provides clear box-by-box guidance on exactly what information to provide if you are claiming the Remittance Basis, taking into account your specific domicile/residency/income circumstances.                          Residence, remittance basis etc notes
Thank you. 

Thank you for your answer. I kept studying this question and also found this document: https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm32320 which says: If a long-term resident (RDRM32200) claims the remittance basis under section 809B for a tax year their claim must include a nomination of foreign income and gains for that tax year. The nomination is made from so much of the individual’s foreign income and/or gains (or a combination of the two) for that tax year as they choose. It may be all, or just a part of, their foreign income and gains for that tax year. Example Frederick is a non-domiciled, long-term resident, paying tax at a 40% tax rate and liable to the £30,000 remittance basis charge. In 2011-2012 he had £100,000 interest paid into an overseas bank account. As he is liable to tax at rate of 40%, the amount of this interest Frederick might nominate in his remittance basis claim for 2011-2012 is £75,000 of the total £100,000. It seems to me to be clear enough that if I'm obliged to pay remittance basis charge, then I can (if I want) nominate some part of my unremited income (which is covered by this RBC which I pay). It means that in future I can (if I want) remit these sums to the UK without paying taxes for them again. Therefore in case when I'm choosing remittance basis and not paying RBC, then I can't really nominate any unremitted income. So my nominated income can be only 0 in this case. I've read all the links, forms, notes provided here many times before asking my questions. And I would appreciate if you please could confirm that my understanding is correct. Otherwise would you please explain how it works without sending same links again? Thank you very much in advance for you support.

Hi Kirill,
Sorry, but as this forum is for guidance only you will need to contact HMRC direct on 0300 200 3310 or contact a specialist to discuss further.
Thank you. 

Hi HMRC Admin This is my first time submitting the UK tax and I am claiming remittance basis, I have filled in the foreign income and foreign capital gains in SA106 and SA108 for my overseas income and gain. Do I have to repeat the same information here? Or when I claim for remittance basis, I should only report my overseas income and gain here in SA109, and exclude them in SA106 and SA108? Please advise. Many thanks! Best wishes, 

Hi,

To claim the remittance basis, requires the supplementary page SA109, to be submitted with the tax return. On the SA109, you would declare the unremitted income and capital gains in the remitance section. Do not include the unremitted income on SA106 or SA108, otherwise it will be taxed along with your income, and, or capital gains. 
You can see guidance below to help you decide if it is your best option:  

Residence, domicile and the remittance basis: RDR1

Please note that you cannot use the HMRC online tax return for claiming the remittance basis. To submit your tax return online, you will need to have a government gateway user ID and password and buy  commercial software that includes the residence section. You can find a list of commercial suppliers here:

Self Assessment commercial software suppliers 

If you are unable to submit online, you will need to download and print a paper version here:

Self Assessment tax return forms

Thank you.

Hi, Guidance note for residence, domicile and the remittance basis: RDR1 , in Section 9.33 reads: "9.33 If you claim the remittance basis AND are a long-term UK resident, you will be required to nominate some foreign income and/or gains, on which the RBC is charged, on your Self Assessment tax return. The charge will be Income Tax, Capital Gains Tax or a combination of the 2." [AND is capitalized to highlight that both conditions need to be met for me to be required to nominate foreign income.] I am claiming remittance basis, however, I am NOT a long-term UK resident (and have not filled either 23.1 or 23.2), hence I am NOT subject to RBC and hence based on RFR1 p. 9.33 I am NOT required to nominate foreign income in box 34 or 35. Furthermore, SA109 notes when explaining what I need to put in boxes 34 or 35 again only speak about RBC, which does not apply residents who are not long-term residents (my case), hence it appears that I do not need to nominate any income in boxes 34 or 35. Can you please confirm that this is the correct reading of RDR1 that boxes 34 or 35 need to be filled ONLY by long-term residents (i.e. those who have filled either 23.1 or 23.2) and does not apply to those that only filled box 28? Thank you.

in my previous post, 23.1 and 23.2 actually mean boxes 32 and 33

Hi redwingsred,
Section 9.33 of RDR1 uses the term "and/or" and is not in capitals.  This is stating that you can nominate just income or capital gains or both.  It does not mean that you have to have both, in order to nominate.  (Guidance note for residence, domicile and the remittance basis: RDR).  
Boxes 34 or 35 need to be completed by anyone who is claiming the remittance basis and put ‘X’ (only) in boxes 28, 31 or 32 of SA109. (Residence, remittance basis etc (2023)).  
The remittance basis charge (RBC) of £30000 or £60000 applies when a resident, non domiciled individual, is resdient in the UK more than 7 years and claim the remittance basis.  
They are considered long term residents and are required to 'nominate' income or gains or both, so that the foreign income or gains that are ‘nominated’ are subject to UK tax in that year on the arising basis, and are then regarded as ‘taxed’ income or gains. They will not be taxed again if or when they are brought into the UK.
Thank you.