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Posted Sat, 30 Jul 2022 06:04:48 GMT by daytrader
I am a day trader using an overseas offshore investment account to make profit. In year 2021 to 2022, I made GBP 158,641.97 profit total. Only 53,298.55 was remitted to UK. The rest of the amount is still keeping overseas. From my understanding, I can use remittance basis. Only the remitted income will be charged tax and the unremitted income will not be charged any tax. Is my understanding correct? Furthermore, can you also please tell me which form should be filled in and submitted? SA100 and SA109? do I need to submit SA106? Your replies will be highly appreciated. Thank you.
Posted Mon, 01 Aug 2022 13:24:55 GMT by HMRC Admin 2
Hi,

The remittance basis is an alternative tax treatment available to individuals who are resident but not domiciled in the UK and have foreign income and gains.

Remittance basis is not available if you are deemed domicile in the UK.

You can find further information and details of how to submit a claim here:

Remittance basis 2021 (HS264)

Thank you.
Posted Sat, 13 Aug 2022 10:47:11 GMT by daytrader
Hi, I have checked that i am a non domicile UK resident. I think i am able to claim Remittance basis. As i mentioned, I have remitted GBP 53,298.55 to UK in year 2021 to 2022. While i am filling the form SA109, i find that there is a box 34 "amount of income you are nominating". Can I simply put the remitted amount GBP 53,298.55 in that box as the nominated income? Your reply will be highly appreciated. Thank you very much.
Posted Tue, 16 Aug 2022 08:52:46 GMT by HMRC Admin 2
Hi,

You can find guidance here:

Residence, remittance basis etc (Self Assessment SA109)

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.  To work out the amount of nominated foreign income, you must convert the income into UK pounds using the exchange rate at the time the income arose. 

If you’re not sure, ask your tax adviser. If you’re calculating your own tax, include the Income Tax or Capital Gains Tax elements of the RBC in your total tax amount. If you’re using the ‘Tax calculation summary’ page add either £30,000 or £60,000 to the amount in box 1. Do not forget to show the loss of allowances and AEA in your tax calculation. If you’re liable to pay the RBC you must put a nominated figure of at least £1 in either box 34 or box 35.  

You can find further guidance here:

RDRM32320 - Remittance basis: accessing the remittance basis: remittance basis charge - nomination of foreign income and gains: making a nomination

Thank you.
Posted Tue, 16 Aug 2022 12:47:17 GMT by daytrader
Hi, Further information to my case, I am a non domicile UK resident and 2021-2022 is my first tax year in UK( landed UK on Aug 2021). If I claim remittance basis, with my understanding, my claim is exempted from remittance basis charge. May I know that my understanding is correct? If I am exempted from remittance basis charge, Is it a must for me to fill in box 34 or 35 of form SA109? Your reply will be highly appreciated. Thank you very much.

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