What is the repair rule under section 809Z3 of the Income Tax Act 2007?

The repair rule under section 809Z3 provides a remittance basis exemption for property brought into the UK specifically for repair or restoration. If the repair conditions are met throughout the relevant period — covering transit, storage, and the actual restoration work — bringing the property into the UK does not count as a taxable remittance.

What are the repair conditions that must be satisfied under section 809Z3?

The repair conditions cover three stages: the property is actually undergoing repair or restoration; it is in transit to repair premises or in storage there before work begins; or it is in storage at those premises, moving between them, or in transit back outside the UK after the work is completed. These stages cover the property's entire journey.

What qualifies as repair rule premises under section 809Z3?

Repair rule premises means the UK premises where the repair or restoration actually takes place, or other commercial premises in the UK that the restorer uses for storing property in connection with that work. The restorer is the person who carries out or is going to carry out the repair or restoration.

Can the repair rule apply for only part of the relevant period?

Yes. If the repair conditions are met for only part of the relevant period, the property can still qualify, provided the remaining part of the period is covered by either the repair conditions or the separate public access rule. Partial-day compliance is permitted on the first and last days of the period in question.

Income Tax Act 2007 section 809Z3

Repair rule

Section 809Z3 sets out the conditions under which property brought into the UK for repair or restoration can qualify for the remittance basis exemption under the repair rule.

Property meets the repair rule if it is actively undergoing repair or restoration, is in transit to or from UK repair premises, or is in storage at those premises before or after the work
The rule can apply for the whole or part of the relevant period, but any remaining part of the period must be covered by either the repair conditions or the public access rule
"Repair rule premises" are UK premises used for the repair or restoration itself, or other commercial premises in the UK used by the restorer for storing property in connection with that work
The conditions must be met on the first day, the last day, and every day in between for the period or part-period in question, though partial-day coverage is acceptable on the first and last days

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