Remittance basis and arising basis

I have similar situation. So in this sense, it is just a delay of tax payment by using remittance basis if we would like to remit in the money later. I have another question. As a non Uk domicile but Uk resident, if my foreign income is less than 2000 pound, the remittance basis automatically apply. In this sense, if I remit in this foreign income later, do I need to pay tax on this ? Please advise, Thanks 

Hi CL
If you’ve used the remittance basis in earlier years and you bring any of those earlier years’ foreign income and gains to the UK at a later date, you will still be liable to UK tax on this remittance even if you do not claim the remittance basis in the later year.
Thankyou.

Thank you very much for clarification.

In the previous fiscal year, I used the Remittance Basis and earned GBP 5000 in capital gains from overseas sources, which I did not remit to the UK. In this fiscal year, I am using the Arising Basis and have a capital tax allowance of GBP 6000. If I remit those GBP 5000 capital gains from overseas sources in the previous fiscal year to the UK this year, can I use the current year's capital tax allowance to cover it? Please advise. Thank you.

Hi bmc,
Yes, If your UK gains and foreign gains combined, are below £6000.00 annual exempt allowance, no tax is payable.  
The foreign gains still need to be declared.
Thank you. 

Hi, I wish to seek clarification on the following: I am researching if a HongKonger under a BNO dependent visa has to declare Hong Kong income to the UK despite being non-dom in the UK but is a tax resident in 2022-2023. I saw one of HMRC's agent responses to a previous question by "Chang" and was confused - Chang's question is as follows: 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. Response by HMRC Admin 10 : 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. Does this mean that Hong Kong income brought into the UK is not taxed, while foreign income from other countries are taxed?

Hi 147147147,
It depends on the double taxation treaty for each country.
For Hong Kong, their treaty allows for pensions to be taxed in Hong Kong only and for employment income as long as the work is carried out in Hong Kong then it is only taxable there.
You should refer to:
Hong Kong: tax treaties
To see if any income you receive is taxable in UK.
Thank you. 
 

Hi I am a UK resident and domiciled here for all purposes since 2005. I have had a rental property in India which has generated income for the last 9 years. Returns weren't filed in India due to not meeting the taxation threshold in India and also no other sources of income in India. Over this period, I have declared it as worldwide income and paid my taxes due here. This was on the advise of my previous accountant. However, I have recently changed accountants and the new one feels that I don't need to declare this income as I have not remitted it to UK. My understanding is that this is incorrect and that I need to declare this income. Could you please advise and please post any relevant links that I could share with my accountant. Many thanks

Hi,

The remittance basis is available to individuals who are UK resident but not UK domiciled. To claim the remittance basis, means giving up your personal tax free allowance and capital gains annual exempt allowance and having your tax liability calculated on your UK income and gains and any remitted income and gains.  

Where you have been resident in the UK for 7 of the last 9 years, there is a remittance charge of £30000 added to your income tax calculation.

Where you have been resident in the UK for 12 of the last 14 tax years, the remittance charge is £60000 and if you have been resident in the UK for 16 or more years, you are deemed domiciled and remittance basis can no longer be used.  Instead you are taxable on your worldwide income.  

Have a look at section 9 of RDR1.

Residence, domicile and the remittance basis: RDR1

Thank you.

I am an UK resident with non-UK domicile status. I would like to use the remittance basis for the 2023-24 tax year. But is it a must that I need to continuously use remittance basis for the coming consecutive tax years (i.e. 2024-25, 2025-26, … etc.) until I become UK domicile? I’m asking because I plan to use remittance basis for the 2023-24 tax year only. After that, I will switch back to arising basis for the coming tax years (i.e. 2024-25, 2025-26, … etc.)

Hi John Lau,
No, you can elect to use the remittance basis in any tax year that you want, and the arising basis would be default in any other tax year.
Have a look  here:
Residence, domicile and the remittance basis: RDR1
For some guidance on using the remittance basis.
Thank you. 
 

Hi HMRC Admin team, Thanks for your reply. I have a follow up question about Remittance Basis Charge (RBC). I re-use my scenario of being an UK resident with non-UK domicile status and supplement more details about the basis of different tax years as below. 2021-22 (UK resident since Apr2021) : arising basis 2022-23: arising basis 2023-24: remittance basis 2024-25: arising basis 2025-26: arising basis 2026-27: arising basis 2027-28: arising basis 2028-29: arising basis 2029-30: arising basis From 06Apr2030, I have been tax resident in at least 7 out of 9 preceding tax years. Do I need to pay the £30000 RBC even though I only use the remittance basis once (on 2023-24 tax year). If I change to UK domicile before 06Apr2030, do I still need to pay the £30000 RBC?

Hi John Lau,
HMRC cannot comment on hypotherical situations or on future events as legislation may change.
Please refer to additional guidance for current guidlines at
RDRM32390 - Remittance basis: accessing the remittance basis: remittance basis charge - nomination of foreign income and gains: payments on account - interaction with the remittance basis charge (RBC)
Thank you.

Dear HMRC team, I would like your advise to check if my understanding about changing from remittance to arising basis or vice-versa is correct. I have a salary income in HK and claimed for Remittance Basis on the first two years living in the UK. If I change to Arising Basis on the third year, does it mean I can transfer fully the current year's income to the UK after paying taxes? And no taxes will be applied to the previous/following years' income where remittance basis was claimed as long as those income are spend or stay overseas? 2020 to 2021 Remittance basis (remains overseas - no UK taxes applies) 2021 to 2022 Remittance basis (remains overseas - no UK taxes applies) 2022 to 2023 Arising basis (salary income after paying UK taxes - fully transferred to the UK) 2023 to 2024 Remittance basis (remains overseas - no UK taxes applies) Please kindly advise. Thank you!

Hi,

Please refer to guidance at:

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

Thank you.

Hello, I have claimed remittance basis for last 7 years since becoming UK resident. This year I will be taxed on arising basis. My foreign funds are mixed funds and the only source of my income is annually recurring and taxed foreign interest income equivalent to GBP 30000. I have two simple questions: 1. If I need to remit my foreign income of £30,000 this year to UK, how much tax do I need to pay. 2. Will this remittance be considered to be coming out of this current year's interest income (and not earlier years when I claimed remittance basis)

Hi,

You can see guidance here:

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

Thank you.

Thanks for this but this (the nomination of foreign income) does not apply to me since I intend to start using arising basis for taxation this year onwards and will be paying tax on my global income. My question is that now that I will be paying tax on my global income, am I eligible to remit only that particular foreign income (earned this year and taxed in UK) to UK without any additional taxes? Many thanks

Hi Saurabh,
As now taxed on the arising basis you will need to declare your worldwide income that is received each tax year whether you remit it or not.
Please see:
RDRM31030 - Remittance Basis: Introduction to the Remittance Basis: Overview of the Remittance Basis regime: What is the Remittance Basis?
Thank you. 

Thanks, yes I will be taxed on my worldwide income for the first time this year under arising basis. My foreign income for each of the last 7 years has been £30,000 but I haven't paid any UK tax on that because of opting for remittance basis. My foreign income this year will be the same as well. Would I be freely able to remit that £30,000 to UK after paying tax this year? Or will there be any charges over and above that. Thanks