Remittance basis and arising basis

Hi, I am a UK tax resident with non-UK domicile status. I moved to UK last year and had chosen to report my personal tax as arising basis. May I know if I have to stick with arising basis in the future years? Or can I change my tax assessment annually as long as I still qualified for claiming the remittance basis? Kindly advise.

Hi,

You can choose to use the remittance basis if you want, provided you still meet the criteria. You can see guidance on remittance basis here:

Residence, domicile and the remittance basis: RDR1

Thank you.

Hi, Thank you very much for your prompt reply. I have reviewed the attached link in details, but still have a question in mind. As I mentioned before, I had my personal tax in arising basis last year. Given that I am qualified for remittance basis for the coming 5 years, I plan to use remittance basis in this tax year. Can I switch back to arising basis next year? Kindly advise.

Hi,

You can see guidance here:

Remittance basis changes

Thank you.

Hi, Admin. Thank you very much for your reply. This helps me to understand more on the remittance charges and how it works. Below is my case : I am a UK tax resident starting from 2021 with non-domicile status. I am qualified for remittance basis for 7 years. 2021/2022 - personal tax paid at arising basis 2022/2023 - plan to use remittance basis for tax assessment For 2023-2024, can I go back to arising basis for tax assessment? Kindly advise.

Hi,

You can choose to use the remittance basis or the arising basis. You would need to work out which is more beneficial to use.

Thank you.

Hi, If I choose remittance basis in this tax year2022-2023, I cannot emit capital gain to UK. But after this tax year, say August of 2023, can I emit the capital or the capital gain to UK? Thanks in advance for your reply.

Hi,

Please see guidance at on what or how to report.

Remittance basis 2022 (HS264)

Thank you.

Hi, I am bno Hong konger. I have been Uk for one and half year already. I have apply remittance basis for my taxation. Recently I have received my provident fund in Hong Kong. May I know that if I remit the fund to Uk . Do I need to pay tax. Thanks

Hi,

The Mandatory Provident Fund (MPF) is not taxable in the UK and does not need to be reported to HMRC.

Thank you.

Hi, I am a UK tax resident with non-UK domicile status in the year on 2022-2023, I am BNO Hongkonger and retired without UK income. I have oversea income only and I want to clarify that i need to submit foreign pages SA106 to report my foreign income even i will claim for remittance basis and split year treatment (SA109) , Thank you.

Hi Chang
If your foreign income is solely from Hong Kong then you do not declare this to HMRC.
If from anywhere else then yes you will need to completeSA106 and SA109.
Thankyou.

Hi, I am a UK tax resident with non-UK domicile status (BNO hong konger) and will apply remittance basis for the year 2023 to 2025 (two tax year periods). I have bank savings (capital) in hong kong, which generates interest (foreign income) more than 2000 pounds in each tax year. If I won't remit the interest ( foreign income) to UK in the first tax year (2023 to 2024), and will remit the interest to UK in the following year(2024 to 2025), do I need to pay UK tax on the interest in the first tax year (2023 to 2024)? Thank you.

Hi Noelgigi,

Please have a look at the guidance for residence, domicile and remittance to check if your qualify for the remittance basis Residence, domicile and the remittance basis: RDR1

Thank you
 

Dear Administrator, I am qualified to apply for remittance basis. I would like to clarify my question. If I use remittance basis this year 2023-2024 and do not remit any foreign income. Then I will use arising basis next year 2024-2025. So in the next year, I need to pay the tax for the foreign income generated overseas in 2024-2025. My question is: Do I need to pay the tax for the foreign income generated overseas in the previous tax year 2023-2024? Thank you

Supplementary notes for above situations : I remit the foreign income (generated in previous year 2023-2024 ) in 2024-2025. So in 2024-2025, do I need to pay the tax for the foreign income generated overseas in both tax years 2023-2025?

Hi,

Please refer to:

Remittance basis 2023 (HS264)

Thank you.

Thanks for the reply and the reference. The attached reference doesn't have any information regarding the question I mentioned. I couldn't find the answer. Do I need to pay the tax for the foreign gain generated last tax year ? (if I use remittance basis last tax year, and use arising basis this tax year and remit the previous foreign gain this year)

Hi,

As this is in the future we cannot answer as legislation may change.

For current rules it depends on what type of income you have.

Whether you are taxable on the arising basis or the remittance basis in 2022 to 2023, you are taxable on any remittances of income or gains that you make in 2022 to 2023 that arose or accrued in an earlier year in which you were taxed on the remittance basis.

Thank you.

Hi Thanks for your information