Switching between Remittance and Arising Basis

I relocated to UK in 2022 and am non-domiciled. I have been filing my self-assessment on a remittance basis. If I switch to arising basis in 2025/26 and start remitting money, do I have any additional tax liabilities on these funds that I am remitting? Thank you.

Hi,

If you bring income, and, or capital gains that arose in a tax year where they were not remitted, into the UK in a later tax year then, under the remittance basis rules, the income or capital gains are taxable in the UK in that later tax year.  

Taxation on the arising basis, taxes your worldwide income and capital gains, regardless of whether it is remitted to the UK or not.

Thank you.
 

Thank you, how about if I only remitted my original investment amount, and not the capital gains? For example, I had a foreign property investment of £100k, which generated £20k capital gains when I was on remittance basis. After I switched to arising basis, I then only remit the original £100k. In this case, am I liable to pay any tax?

Hi,

Whether you’re taxable on the ‘arising basis’ or the ‘remittance basis’, you’re taxable on any remittances of income or gains that arose or accrued in an earlier year in which you were taxed on the remittance basis.

Thank you.

I do understand that I’m taxable on any remittances of income or gains. However, it’s neither the income nor gains I’m referring to. I’m referring to the original investment amount - is this subject to tax?

Hi emilie tan

Any income or capital gains arising in a tax year you were not UK resident, can be brought into the UK as capital and will not be taxable in the UK.

Thank you