Remittance TAxation

Question 1

Overseas workday relief

Answer 1

Employees not domiciled in the UK for tax purposes who are splitting their working time between the UK and overseas, are entitled to a claim an exemption from paying their UK tax on their income relatiting to non-Uk duties.
Dual contract arrangments.
By claiming OWR, eligible employees are liable to UK tax on their UK employment but do not pay UK tax on unremitted earnings relation to overseas duties. Earnings include, Salary, fees, bonus, comission etc.
This is considered for the first three years in the UK provided the employee was not a UK tax resident preceding three tax years. First tax year avaliable is year of arrival. Careful planning of arrival can therefore max the potential relief avaliable. non Uk res also non uk dom for that period would not be subject to UK tax even if remitted. There is no restriction to the number of tax years in which an individual can claim OWR, providing the test regarding being non-resident for three consecutive tax years is met. Therefore a non-domiciled employee partly working in the UK for three years who then works full-time outside the UK for the following three tax years before returning to work partly in the UK for another three years would be entitled to OWR for six of those nine years. This is, of course, on the assumption that the employee remains non-domiciled in the UK and is not deemed to be domiciled by reason of the number of tax years they are resident in the UK over a 20 year reference period.

Question 2

How is relief given?

Answer 2

Claimed via a self assessment tax return for that tax year.

Question 3

Remittance basis eligibility

Answer 3

Non - Uk dom are eligible

Question 4

What is eligible?

Answer 4

Relevant foregin income
chargeable overseas earnings
foreign specific employment income
foreign chargeable gains

Question 5

How does it work?

Answer 5

Liable to pay tax on;

1. all Uk income and gains as they arise or accrue each year.
2. foreign income and gains if and when they are brought into the UK, including property gains.

Question 6

What do you lose?

Answer 6

Personal allowances, annual exempt amound tof CGT.

Question 7

The claim?

Answer 7

ITA 2007 within 4 years of the end of the relevant year. 
withdrawal of claim. - 12 months.
circumstances when not required.
- de minus relief - less than £2000
nothing taxable in UK
Conditions for automatic access 
conditions for acces by claim

Question 8

Exemption for small amounts of forugn income

Answer 8

to qualify you must be;

Uk res, non dom, employed, basic rate, less than £10,000 overseas, £100 interest overseas,

Question 9

If you meet conditions?

Answer 9

Not be liable for UK tax on foreign income, either when it arises or when it is brought into the uk
do not need to claim remittance

Question 10

Consequences of using remittance basis

Answer 10

Foreign income and gains are not taxed unless and insofar as remitted to the UK.
Loss of IT
Loss of CGT
dividend rates not applicable on foreign dividends.
long stay non dom charges.

Question 11

TCGA 1992 s 167za

Answer 11

If the taxpayer makes an election under TCGA 1992 s 16ZA with the first year’s tax return in which he makes a s809B (remittance basis) claim. This is a once-only opportunity and once an election has been made it cannot be revoked.
Once you have made this election your foreign losses may be set against your UK gains as well as against your forgeign gains.
Consequences - (ss809,809)

Question 12

Remittance basis charge

Answer 12

6 april 2017

either £30,000 and £60,000.