RDRM32020 - Remittance Basis: Accessing the remittance basis: Claiming the remittance basis: Making a claim

Individuals who meet the status conditions RDRM32010 must decide each year whether they wish to be taxed on the remittance basis instead of the arising basis of assessment that generally applies to UK residents.  

Note: From 6 April 2013 the concept of ordinary residence has been removed from the remittance basis legislation and for most direct tax purposes. For tax years 2013-2014 onwards the only qualifying condition for claiming the remittance basis is that an individual is not domiciled in the UK. 

The Self Assessment system is the mechanism by which a claim to the remittance basis is made in the majority of cases. There are some exceptions to making a formal remittance basis claim at sections 809D and 809E ITA 2007, which are covered in detailin RDRM32100.  If a non-UK domiciled individual does not make a claim to the remittance basis for a tax year, they will be taxed on the arising basis of assessment for that year. 

If an individual has received a notice to file a Self Assessment return for the tax year, the claim to the remittance basis for that year must be made in the return (see section 809B(3) ITA 2007 and section 42(2) TMA 1970). 

If the return is subsequently amended, the claim may be included then or a previously made claim may be amended or deleted (see section 42(5) TMA 1970). However, when the time period for making an amendment has passed, the claim may not be withdrawn even if the making of the claim turns out to have been a mistake.

Claims for recovery of overpaid tax

Claims for the recovery of overpaid tax (overpayment relief) are not available for overpayments in relation to remittance basis claims. This is because the overpayment will be connected with a mistake in a claim, or a mistake consisting of, or giving a claim, and such cases fall within the exclusions from the overpayment relief legislation.   

Overpayment relief is explained in more detail in the Self Assessment Claims Manual – see SACM12000.

Revoking a remittance basis claim 

Where a remittance basis claim is made in a return, an individual can revoke theclaim within the amendment window for the return. The amendment window for a return is 12 months from the statutory filing date (see section 9ZA TMA 1970).

The amendment window is not extended if the return is under enquiry (see section 9B TMA 1970).