Income Tax Act 2007 section 809Z2

Personal use rule

Section 809Z2 sets out when clothing, footwear, jewellery and watches qualify under the personal use rule for remittance basis purposes.

• Clothing, footwear, jewellery and watches can meet the personal use rule if they belong to a relevant person and are for the personal use of a relevant individual
• A relevant individual is the taxpayer themselves, or their spouse, civil partner, child or grandchild
• Both conditions — ownership by a relevant person and personal use by a relevant individual — must be satisfied
• The personal use rule is relevant in determining whether certain items brought into the UK count as taxable remittances of foreign income or gains