When is foreign income treated as remitted to the United Kingdom under section 809L?

Foreign income is treated as remitted when money, property or services linked to it reach the UK or benefit a relevant person here. Conditions A and B must both be met: property is brought to or used in the UK for a relevant person's benefit, and that property derives from the foreign income or gains, directly or indirectly.

What is a relevant debt for the purposes of section 809L ITA 2007?

A relevant debt is one that relates, wholly or partly, directly or indirectly, to property brought to the UK or a service provided in the UK under Conditions A, C or D. Using property in respect of a relevant debt includes paying interest on the debt and providing security for it, even when the payment occurs outside the United Kingdom.

How does section 809L apply to gifts and third-party property?

Condition C applies where qualifying property given to a gift recipient is brought to or used in the UK and enjoyed by a relevant person. Condition D covers property belonging to someone who is neither a relevant person nor a gift recipient, but only where a connected operation links the arrangement back to the individual's foreign income or gains.

Are there any exemptions from the remittance rules in section 809L?

Yes. Section 809L is subject to exemptions in sections 809V to 809Z6 of the Income Tax Act 2007. These provisions treat certain property as not remitted to the United Kingdom, covering for example money paid to HMRC for tax liabilities and exempt personal property such as clothing, footwear and personal accessories brought to the UK for personal use.

Income Tax Act 2007 section 809L

Meaning of "remitted to the United Kingdom"

Section 809L defines when foreign income or chargeable gains of a remittance basis user are treated as "remitted to the United Kingdom", triggering a UK tax charge on those amounts.

Income or gains are remitted when money, property or services linked to them reach the UK or benefit a relevant person here — either directly or through property that derives from those income or gains (Conditions A and B together)
A remittance also occurs when qualifying property previously given to a gift recipient is brought to or used in the UK and enjoyed by a relevant person, or is used abroad in connection with a relevant debt (Condition C)
Where a connected operation exists, property belonging to someone other than a relevant person or gift recipient can also trigger a remittance if it is brought to or used in the UK for a relevant person's benefit, or is used abroad against a relevant debt (Condition D)
The concept of "bringing" property to the UK extends to transfers of intangible property, and using property in respect of a debt includes paying interest on or providing security for that debt

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member