RDRM32420 - Remittance Basis: Accessing the remittance basis: Remittance Basis Charge - Nomination of foreign income and gains: Payments on Account - no remittance basis charge due in following year

When the remittance basis of taxation is not claimed in a year following one where the remittance basis has been claimed and the remittance basis charge was paid; the amount of income used to pay part or all of the remittance basis charge may be excluded from the calculations of payment on account.

However, while the remittance basis charge will no longer form part of any payments on account, care should be taken.

A compare should be undertaken on the amount chargeable through payments on account, against the estimated tax due for the year. Any adjustments to the payments on account should only be made to the extent that the estimated tax due for the year is less than the payments on account.

If the estimated figure is less, then a claim to reduce payments on account may be made on form SA 303. Further information on the rules and the time-limits for making a claim to adjust payments on account can be found in the Self Assessment Manual under SAM1110.