PT 51 The Remittance Basis

Question 1

Foreign income is generally taxed on an….

Answer 1

arising basis

Question 2

A non-dom can make a claim for for income to be taxed on the….

Answer 2

remittance basis

Question 3

How is a remittance basis claim made?

Answer 3

year on year via the self assessment return

Question 4

Foreign income taxed on a remittance basis is always taxed how?

Answer 4

As non savings income at 20%, 40%, 45%

Question 5

Where the remittance basis is claimed what are the implications?

Answer 5

No personal allowance
No CGT annual exempt amount

Question 6

Where an individual’s ‘unremitted foreign income’ is less than….

Answer 6

£2,000 the remittance basis applies without the need to make a claim. Personal allowances can then be claimed.

Question 7

Anti-avoidance prevents non-dom individuals from making remittances in tax years in which….

Answer 7

they are temporarily non-UK resident.

Question 8

An individual is temporarily non-resident if….

Answer 8

they are outside the UK for less than 5 years. In this case any remittances in non resident periods will be taxed in the year of return.

Question 9

Income is treated as remitted to the UK if…

Answer 9

money is brought to or used in the UK. A remittance also occurs where property brought to the UK derives from foreign income.