Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Remittance basis definition

What does Remittance basis mean? A method of taxing a resident but non‑domiciled individual so that foreign income and foreign chargeable gains are taxed only when money, assets or value are brought to, used in or enjoyed in the jurisdiction (a “remittance”). United Kingdom: The remittance basis is a statutory regime in the Income Tax Act 2007 and the Taxation of Chargeable Gains Act 1992, applying across England and Wales, Scotland and Northern Ireland. It is usually claimed via Self Assessment (except where unremitted foreign income and gains are under £2,000, which applies automatically). Claiming generally forfeits the personal allowance and the CGT annual exempt amount,...

UK remittance basis: mixed funds under ITA 2007—definition, ordering rules for Conditions A and B, offshore transfers, cleansing, pre-FA 2008 and anti-avoidance [Archived]

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Practice notes

ARCHIVED:

This archived Practice note addresses Mixed funds in the context of the Remittance basis. It reviews:

the statutory meaning of ‘mixed fund’ in section 809Q(6) of the Income Tax Act 2007
when a movement from a mixed fund is treated as a transfer
the steps for determining the make-up of a remittance (arising under Conditions A and B) drawn from a mixed fund

STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime

Finance Act 2025 (FA 2025), which obtained Royal Assent on 20 March 2025, introduces the abolition of the remittance basis of taxation and its replacement with a residence-based regime from 6 April 2025. FA 2025 also substitutes domicile as the key determinant of inheritance tax liability with residence. Additional reforms include revising the Rules for excluded property status, removing protected settlements status for offshore trusts, and changes to overseas workday relief. For further information, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new residence-based regime for IHT from 2025–26. See also: Finance Bill Tracking Service: Key dates (Finance Bill 2025) and Finance Act 2025...

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Alison Cartin

Taylor Wessing LLP

Alison is a Knowledge Development Lawyer for the Private Client Group, responsible for the team's know how and training needs and monitoring legal and market developments. She regularly leads both in-house and external client training events and writes materials for the Bryan Cave Leighton Paisner Tax blog and clients. Prior to becoming a Knowledge Development Lawyer in 2004, Alison advised high net worth individuals and the international wealth management institutions that serve them on the full spectrum of contentious and non-contentious private client issues. She has extensive experience advising on cross-border tax and wealth planning issues and has been involved in advising governmental and regulatory bodies on the cross-border exchange of information in tax matters and international tax agreements. She is a member of the Society of Trust & Estate Practitioners (STEP)....

Web page updated on 22/05/2026

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