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Posted Sun, 10 Mar 2024 11:42:41 GMT by AYEE
Hello, I started to reside in UK during 2022, and have my first tax year in 2022-23 and I have reported all income I earned in UK and overseas in the year of assessment 2022-2023. Can I now choose to elect non-domicile status in the year of assessment 2023-24 so that I do not need to report all my overseas income? And if I do not remit those overseas income arised in year 2022-23 permanently, does it mean that I do not need to pay tax on this income ? Thank You!
Posted Wed, 13 Mar 2024 16:13:56 GMT by HMRC Admin 18

If you are resident in the UK and not domiciled, then you can elect to claim the remittance basis.  This needs to be done via a self assessment tax return, where you will declare the amount of unremitted income (box 34 of SA109) and capital gains (box 35 of SA109).  You will also need to provide a breakdown of the unremitted income and capital gains (box 40 of SA109).  You cannot use the online HMRC tax return to claim the remittance basis, although you can purchase commercial software to allow an online submission, using your government gateway user ID and password.  As long as you do not remit the income or capital gains in a future tax year, it will not be taxed.  Have a look at the guidance on the remittance basis at section 9 of RDR1:

Residence, domicile and the remittance basis: RDR1

Thank you.

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