HMRC launches remittance basis toolkit
A new toolkit aimed at assisting non-domiciled taxpayers that use the remittance basis has been launched. What does this do?
The remittance basis is available to those that are not domiciled in the UK. Where a claim is made (or the remittance basis applies automatically), non-domicile individuals may only be taxed on non-UK income and capital gains to the extent that it is remitted to the UK. The concept of a “remittance” is wide, and as such there are various risks and pitfalls that are often overlooked. For example, if the remittance basis is not claimed in one year, but income generated offshore in a year that the remittance basis is claimed is then remitted, the full amount will be taxable in the UK.
The new toolkit aims to help assess whether or not taxable remittances have been made. It is aimed at advisors, but is also a useful benchmark for taxpayers to refer to in terms of what documentation they will need to send to allow the advisor to check the position. The focus is on checking source documents, and areas of risk are outlined such as credit card usage. The toolkit helpfully contains links to HMRC guidance on various matters.
Related Topics
-
HMRC speeds up National Insurance refunds
HMRC has confirmed that it is using a new automated process to speed up National Insurance refunds. Where its records suggest that someone may have overpaid, HMRC will write to them asking them to check their employment and contribution details before any refund is processed. Could you be due money back?
-
Should you voluntarily payroll benefits in kind?
The window to sign up to voluntarily payroll non-mandatory benefits in kind for 2027/28 will open in November. Is it worth volunteering to pay HMRC earlier than required or should you wait until it becomes mandatory in 2028/29?
-
Wise tax statement errors could affect 4,000 customers
Around 4,000 UK customers of financial services provider Wise have been told that tax statements issued between 2021 and 2025 contained incorrect figures. The errors could have resulted in taxpayers paying too much or too little income tax and capital gains tax (CGT). What should affected customers check?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.