RDRM32520 - Remittance Basis: Accessing the remittance basis: Temporary non-residents and Relevant Foreign Income: Temporary Non Residents: qualifying conditions
The qualifying conditions for temporary non residents who fall within ITTOIA05/s832A(1) are outlined below.
These are that an individual:
- satisfies the residence requirements for the year of return (that is, the tax year of assessment)
- did not satisfy the residence requirements for one or more years immediately before the year of return, but did satisfy the residence requirements for an earlier year
- there are fewer than five tax years between the year of departure and the year of return
- the individual satisfied the residence requirements for at least four out of seven tax years immediately before the year of departure
Residence requirements
The residence requirements are satisfied for a tax year, if at any time during that year the individual is either:
- Resident in the UK and not treaty non-resident (see below for meaning of ‘treaty non-resident’)
- Ordinarily resident in the UK, and is not treaty non-resident.
An individual is ’treaty non-resident’ if they are regarded as resident in a foreign territory and not resident in the UK for the purposes of a double taxation arrangement (DTA) that has been agreed between the UK and that other territory. See INTM154000+.
Example
Travis, a long-term UK resident has been a remittance basis user since 2000-2001. He leaves the UK for a work secondment in January 2009 (2008-2009) and is not resident in 2009-2010 and 2010-2011.
Travis returns to the UK in August 2011 and meets the residence requirements in s832A in 2011-2012.
He has £6,000 of relevant foreign income from 2007-2008, a year in which he had claimed the remittance basis under ITA07/s831. He also has £8,000 of relevant foreign income from 2008-2009, a year in which he claimed the remittance basis under the new rules at ITA07/s809B.
In 2009-2010 and 2010-2011 he remits all of this relevant foreign income to the UK to meet certain ongoing UK financial commitments.
Travis will be taxed on £14,000 in 2011-2012 (the ‘year of return’) in respect of his remittances of his relevant foreign income in the years of ‘temporary non-residence’.