RDRM31220 - Remittance Basis: Introduction to the Remittance Basis: Comparisons with pre-April 2008 regime: Using the remittance basis - automatic versus claim

Before 2008-2009, relevant foreign income, general earnings and capital gains taxable on the remittance basis were treated separately, with different legislation governing each

Foreign income (not earnings from employment)	ITTOIA05/s829 and following
General earnings (non-UK)	ITEPA03/s22 and s26
Capital gains (non-doms only)	TCGA92/s12

Before 2008-2009 the remittance basis applied automatically to UK resident but Not Ordinarily Resident and/or non-domiciled individuals (as appropriate) in respect of employment income and capital gains.

However individuals usually had to make a claim to obtain the benefit of the remittance basis in respect of their relevant foreign income RDRM31140. Relevant foreign income is defined in ITTOIA05/s830 but broadly speaking consists of foreign savings and investment income.

For tax years 2008-2009 and following, the arising basis applies to all foreign income and gains, except where the remittance basis applies. In order for the remittance basis to apply, there will usually be a claim by the individual under ITA07/s809B. Such a claim is usually made on their Self-Assessment tax return - refer to RDRM32020 - Claiming the remittance basis.

Note 1 - In both the pre 6 April and post 5 April 2008 regimes, only individuals who are resident but not domiciled in the UK can use the remittance basis for their foreign chargeable gains.

Note 2 - In certain circumstances individuals may choose for the remittance basis to apply without the need to claim on their Self-Assessment tax return - refer to RDRM32100- Exceptions to the claims requirements.