Income Tax Act 2007 section 809I

Remittance basis charge: income and gains treated as remitted

Section 809I deals with what happens when a long-term UK resident who pays the remittance basis charge brings their nominated foreign income and gains into the UK, and how the tax system re-characterises those remittances for charging purposes.

• Where nominated income and gains are remitted to the UK while other remittance basis income remains unremitted, and the £10 cumulative threshold is exceeded, a special charging rule applies
• Tax is charged as if the amounts deemed remitted under section 809J had actually been brought to the UK, and the amounts actually remitted had not been — effectively substituting one set of remittances for another
• Nominated income and gains comprise the total of all amounts nominated under section 809C for the current and all earlier nomination years, while remittance basis income and gains cover all other unremitted foreign income and gains for years when the remittance basis applied
• The £10 test is met if, looking at each nomination year individually, the cumulative total of nominated income and gains actually remitted from at least one nomination year exceeds £10 by the end of the year in question