Part 14Income tax liability: miscellaneous rules

C6C9C10C11C3C1C2C5F2Chapter A1Remittance basis

Annotations:
Amendments (Textual)
F2

Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)

Modifications etc. (not altering text)
C6

Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)

C9

Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)

C10

Pt. 14 Ch. A1 modified by 1988 c. 1, s. 762ZB(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)

C11

Pt. 14 Ch. A1 modified by 1992 c. 12, s. 87B(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119))

C3

Pt. 14 Ch. A1 modified (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 19(3)

C1

Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41F(8) (as substituted (6.4.2015) by Finance Act 2014 (c. 26), Sch. 9 paras. 5, 47 (with Sch. 9 para. 48))

C2

Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643F(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

C5

Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643N(3)(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

Application of remittance basis

C4C8C2C5C7809CC2C5Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply

1

This section applies to an individual for a tax year if the individual—

a

is aged 18 or over in that year, and

F6b

meets F7... the 12-year residence test or the 7-year residence test for that year.

F81ZA

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F51A

An individual meets the 12-year residence test for a tax year if the individual—

F10a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3b

has been UK resident in at least 12 of the 14 tax years immediately preceding that year.

1B

An individual meets the 7-year residence test for a tax year if the individual—

a

does not meet F11... the 12-year residence test for that year, but

b

has been UK resident in at least 7 of the 9 tax years immediately preceding that year.

2

A claim under section 809B by the individual for that year must contain a nomination of the income or chargeable gains of the individual for that year to which section 809H(2) is to apply.

3

The income or chargeable gains nominated must be part (or all) of the individual's foreign income and gains for that year.

4

The income and chargeable gains nominated must be such that the relevant tax increase does not exceed F9

F4za

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a

for an individual who meets the 12-year residence test for that year, F12£60,000;

b

for an individual who meets the 7-year residence test for that year, £30,000.

5

The relevant tax increase” is—

a

the total amount of income tax and capital gains tax payable by the individual for that year, minus

b

the total amount of income tax and capital gains tax that would be payable by the individual for that year apart from section 809H(2).

F15A

The references to income tax in subsection (5) do not include income tax under section 424 (gift aid).

6

See section 809Z7 for the meaning of an individual's foreign income and gains for a tax year.