Income Tax Act 2007 section 809H

Claim for remittance basis by long-term UK resident: charge

Section 809H imposes a minimum tax charge on long-term UK residents who are aged 18 or over and who claim the remittance basis of taxation, with the amount depending on how long they have been resident in the UK.

• Individuals who have claimed the remittance basis, are aged 18 or over, and meet either the 7-year or 12-year UK residence test are subject to a minimum remittance basis charge
• Income tax is charged on nominated foreign income and capital gains tax on nominated chargeable gains as if the remittance basis did not apply, and if the resulting tax increase falls short of the applicable amount, the charge is topped up automatically
• The applicable amount is £30,000 for individuals meeting the 7-year residence test and £60,000 for those meeting the 12-year residence test
• Scottish and Welsh taxpayers are treated as if they were neither Scottish nor Welsh taxpayers when calculating the remittance basis charge on nominated income