non-residence etc. notes - andica · residence, remittance basis etc. notes ... notes in booklet...

Residence, remittance basis etc. notes Tax year 6 April 2013 to 5 April 2014

SA109 Notes 2014 Page RRN 1 HMRC 12/13

ContentsResidence status RRN 2

Boxes1to9 RRN2

Boxes10to14 RRN7

Personal allowances RRN 8

Boxes15to16 RRN8

Dual residents claiming the remittance basis RRN 9

Residence in other countries and Double Taxation Relief RRN 10

Boxes18to22 RRN10

Domicile RRN 11

Temporarynon-residenceandcapitalgains RRN11

Boxes23to27 RRN12

Remittance basis RRN 12

Boxes28to39 RRN13

More information RRN 17

Consideringyourresidencestatus RRN17

ResidenceinothercountriesandDoubleTaxationRelief RRN17

Domicile RRN19

Remittancebasis RRN20

Moreadvice RRN24

TheResidence, remittance basis etc.pagesaremainlyforpeoplewho:•arenotresidentintheUK•areeligibletooverseasworkdayrelief•arrivedintheUKduringthistaxyearandbecameresident•areduesplityeartreatment•haveadomicileoutsidetheUK•haveforeignincomeand/orcapitalgainsandwanttousetheremittance

basisfor2013–14.

Thesenotesarearrangedintwoparts.PagesRRN2toRRN17giveadviceonhowtocompletetheboxesontheResidence, remittance basis etc.pages.MoreinformationabouttherelevantsubjectisgivenonpagesRRN17toRRN22.

YoucanfindmoredetailedinformationaboutthetopicscoveredinthesenotesinbookletRDR1Guidance Note: Residence, Domicile and the Remittance Basis,whichisavailableathmrc.gov.uk/cnr/rdr1.pdf

Wherewerefertoyourresidencestatusforyearspriorto2013–14,thismustbedeterminedunderthepreviousrules.YoucanfindmoreinformationontheseinHMRC6Residence, Domicile and the Remittance Basis,availableathmrc.gov.uk/cnr/hmrc6.pdf

A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109

For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus

Page RRN 2

Residence statusBox 1 If you were not resident in the UK for 2013–14

From6April2013residenceisdefinedinUKlaw.Todetermineyourresidencestatusfortaxyear2013–14youshouldinitiallyconsiderthefirstautomaticUKtest,ifyousatisfythisyouneedlooknofurther.Ifyoudonotmeetthistestyouneedtoconsiderthethreeautomaticoverseastests,ifyousatisfyanyoneoftheseteststhenyouarenotresidentintheUKforthetaxyear.IfyoudonotmeetanyofthesetestsyouwillneedtolookatthesecondandthirdautomaticUKtests,ifyousatisfyoneoftheseteststhenyouareresidentintheUKforthetaxyear.Ifnoneoftheseautomatictestsapplyyouwillneedtolookatthesufficienttiestesttoestablishyourresidencestatus.

Anonlinetool,theTaxResidenceIndicator,isavailabletohelpyoudecidewhetherornotyouareUKresident.Youcanfindthisathmrc.gov.uk/international/residence.htm

Automatic overseas tests

1YouwereresidentintheUKinoneormoreofthetaxyears2010–11,2011–12and2012–13andyouspentfewerthan16daysintheUKin2013–14.

2YouwerenotresidentintheUKinanyofthetaxyears2010–11,2011–12or2012–13andyouspentfewerthan46daysintheUKin2013–14.

3Youworkedfulltimeoverseasoverthetaxyear2013–14,withoutanysignificantbreaksfromoverseaswork,and:

•spentfewerthan91daysintheUKinthetaxyear •workedintheUKformorethanthreehoursadayonfewerthan

31daysinthetaxyear.

Youcannotmakeaclaimtonon-residenceonthebasisofthethirdtestifyouhavearelevantjobonboardavehicle,shiporaircraftandyoumakeatleast6crossbordertripsintheyearthatbeginand/orendintheUK.Refertoparagraph3.25ofRDR3formoreinformationifyouhavearelevantjob.Formoredetailsofwhatcountsasfulltimeworkoverseas,pleaserefertothenotesforbox8andparagraph1.8ofRDR3Guidance Note: Statutory Residence Test (SRT), availableathmrc.gov.uk/international/rdr3.pdf

Automatic UK tests

1Youspent183daysormoreintheUKintaxyear2013–14.

2YouhadahomeintheUKduringallorpartoftaxyear2013–14andmetcertainconditionsinrelationtothathome.Formoredetailsofthistest,pleaserefertoparagraph1.24ofRDR3,availableathmrc.gov.uk/international/rdr3.pdf

3YouworkedfulltimeintheUKforanyperiodof365daysallorpartofwhichfallsintaxyear2013–14;youhavenosignificantbreaksfromUKwork;andyoumeetcertainconditionsinrelationtothetotalnumberofdaysthatyouworkintheUKin2013–14.Fordetailsofthistest,pleaserefertoparagraph1.36ofRDR3,availableathmrc.gov.uk/international/rdr3.pdf

Sufficient ties test

Ifyoudonotmeetanyoftheautomaticteststhenyoumustconsiderthesufficienttiestesttodetermineyourresidencestatus.Thistestisaslidingscale;themoredaysyouspentintheUK,thefewerthetiesyouneedtobeUKresident.ThenumberoftiesneededisshowninthetableonpageRRN3.

AMore guidanceMore information to help you understand your residence status is available at hmrc.gov.uk/ international/rdr3.pdf



Page RRN 3

Days spent in the Resident in any Not resident in UK 2013–14 of previous three previous three tax years tax years16 to 45 At least four ties

46 to 90 At least three ties All four ties

91 to 120 At least two ties At least three ties

121 + At least one tie At least two ties

FormoredetailsofwhatcountsasatietotheUK,pleaserefertothenotesforbox12.

Ifyouarecompletingthisreturnonbehalfofsomeonewhodiedduringtaxyear2013–14,youwillneedtorefertosection4oftheRDR3forhelptodeterminetheirresidencestatus.

Box 2 If you are eligible for overseas workday relief for 2013–14

IfyouwereresidentbutnotordinarilyresidentintheUKat5April2013andeligibleforoverseasworkdayrelief(OWR)atthatdateundertherulesthatwereinplacepriortotheintroductionoftheStatutoryResidenceTest(readHMRC6,chapter7),youmaybeentitledtoOWRfor2013–14ifyouwouldhavebeenentitledtothereliefunderthe‘oldrules’.Readparagraph18ofRDR4Guidance Note: Overseas Workday Relief (OWR),availableat hmrc.gov.uk/international/rdr4.pdf

IfyoureligibilitytoOWRstartsonorafter6April2013,thentobeeligibleforityoumust:•notbedomiciledintheUKthroughouttaxyear2013–14•claimtobetaxedontheremittancebasis•nothavebeenresidentintheUKforanyofthethreetaxyears

priorto2013–14.

Ifyouareeligible,youcanclaimOWRforthreetaxyearsincludingtheyearyoubecameresidentintheUK.

PleasenotetherulesforOWRonlyapplyfornewclaimsfrom2013–14.Ifyouwereclaimingtoberesidentbutnotordinarilyresidentat5April2013,thentransitionalruleswillapply.Fordetailspleaserefertoparagraph17ofRDR4Guidance Note: Overseas Workday Relief (OWR),availableat hmrc.gov.uk/international/rdr4.pdf

Box 3 If your circumstances meet the criteria for split year treatment for 2013–14

Underthestatutoryresidencetest,youareeitherUKresidentornon-residentforafulltaxyear,howeverifyouareresidentfor2013–14youneedtoconsiderwhethersplityeartreatmentappliestoyou.Thereareeightdifferentcasesinwhichthetaxyearcanbesplitintotwoparts;aUKpartforwhichyouarechargedtoUKtaxasaresidentandanoverseaspartforwhich,formostpurposes,youarechargedtoUKtaxasanon-resident.Thecriteriaforeachofthosecasesareoutlinedbelow;youmustmeetalltheconditionsofeachcase.Ifyoumakeanentryinbox3youmustincludedetailsofwhichsplityearcasesapplytoyouinthe‘Anyotherinformation’box,box39.IfyouhavecometotheUKtoliveorworkyoushouldalsoenterinbox39thedateonwhichyouconsidertheUKpartofthesplityeartostart.Or,ifyouhavelefttheUKtoliveorworkabroadyoushouldgivethedateonwhichyouconsidertheUKpartofthesplityeartohaveended.

AMore guidanceGo to hmrc.gov.uk/helpsheet278 to find more information about temporary non-residents and Capital Gains Tax.

Page RRN 4

Case 1 Starting full-time work overseas

Youmust:•beUKresidentintaxyears2012–13and2013–14•benon-residentfortaxyear2014–15becauseyoumeetthethird

automaticoverseastest•satisfytheoverseasworkcriteriafortheoverseaspartof2013–14.

Case 2 The partner of someone starting full-time work overseas

Youmust:•beUKresidentintaxyears2012–13and2013–14•benon-residentfortaxyear2014–15•haveapartnerwhosecircumstancesfalleitherwithinCase1for

taxyear2013–14orwhoconcessionallyreceivedsplityeartreatmentfor2012–13becausetheystartedworkingfull-timeoverseas,readHMRC6,availableathmrc.gov.uk/cnr/hmrc6.pdf

•havebeenlivingtogetherintheUKatsomepointinthetaxyear2012–13or2013–14

•moveoverseassoyoucanlivetogetherwhileyourpartnerisworkingoverseas

•intheperiodbeginningonyourdeemeddeparturedayandendingonthelastdayoftaxyear2013–14either:

—havenohomeintheUKor,ifyouhavehomesinboththeUKandoverseas,spendthegreaterpartofthetimelivingintheoverseashome

—spendnomorethanthepermittedlimitofdaysintheUK.

Case 3 Ceasing to have a home in the UK

Youmust:•beUKresidentintaxyears2012–13and2013–14•benon-residentfortaxyear2014–15•haveoneormorehomesintheUKatthestartoftaxyear2013–14

andatsomepointintheyearceasetohaveanyhomeintheUKfortherestofthetaxyear.

FromthepointyouceasetohaveahomeintheUKyoumust:•spendfewerthan16daysintheUK•inrelationtoaparticularcountry,either: —becomeresidentfortaxpurposesinthatcountrywithinsixmonths —bepresentinthatcountryattheendofeachdayforsixmonths,or —haveyouronlyhome,orallyourhomesifyouhavemorethanone,

inthatcountrywithinsixmonths.

Case 4 Starting to have a home in the UK only Youmust:•beUKresidentintaxyear2013–14•benon-residentfortaxyear2012–13•notmeettheonlyhometestatthestartoftaxyear2013–14butatsome

pointinthetaxyearmeettheonlyhometestandcontinuetodosountiltheendofthetaxyear

•notmeetthesufficientUKtiestestforthepartoftaxyear2013–14beforethedayonwhichyoumeettheonlyhometest.



Page RRN 5

Case 5 Starting full-time work in the UK

Youmust:•beUKresidentintaxyear2013–14•benon-residentfortaxyear2012–13•notmeetthesufficientUKtiestestforthepartoftaxyear2013–14

beforethepointyoufirstmeetthethirdautomaticUKtest.

Case 6 Ceasing full-time work overseas

Youmust:•beUKresidentintaxyears2013–14and2014–15•benon-residentfortaxyear2012–13becauseyouworkedfull-time

overseasforthewholeofthetaxyearundertherulesinforcepriortothestatutoryresidencetest,readHMRC6athmrc.gov.uk/cnr/hmrc6.pdf

•havebeenUKresidentforoneormoreofthetaxyears2008–09,2009–10,2010–11or2011–12

•satisfytheoverseasworkcriteriafortheoverseaspartof2013–14.

Case 7 The partner of someone ceasing full-time work overseas

Youmust:•beUKresidentintaxyears2013–14and2014–15•benon-residentfortaxyear2012–13•haveapartnerwhosecircumstancesfalleitherwithinthecriteriafor

Case6splityeartreatmentintaxyear2013–14orwhoconcessionallyreceivedsplityeartreatmentfortaxyear2012–13becausetheyceasedworkingfull-timeoverseas,readHMRC6athmrc.gov.uk/cnr/hmrc6.pdf

•movetotheUKonadayintaxyear2013–14soyoucancontinuetolivetogetherwithyourpartnerontheirreturnorrelocationtotheUK

•inthepartofthetaxyear2013–14,beforeyourdeemedarrivalday,either: —havehadnohomeintheUKatanytime,or —hadhomesbothintheUKandoverseas,andyouspentthegreaterpart

ofthetimelivinginyouroverseashome•notexceedthepermittedlimitofdaysspentintheUKintheoverseaspart

ofthetaxyear2013–14beforetheUKpartoftheyearcommenced.

Case 8 Starting to have a home in the UK

Youmust:•beUKresidentintaxyears2013–14and2014–15•benon-residentfortaxyear2012–13•havenoUKhomeatthebeginningoftaxyear2013–14butstarttohave

aUKhomeatsomepointduringthetaxyearandcontinuetohaveaUKhomefortherestofthetaxyearandforalloftaxyear2014–15

•nothavesufficientUKtiestomakeyouUKresidentintheperiodfromthe6April2013tothepointyoustarttohaveaUKhome.

Inanumberoftheabovecasesyouareaskedtoconsiderifyoumeetthesufficienttiestest.Youmayberequiredtouseanapportionedtiestable.Formoreinformationonthisandthedetailsofsplityeartreatmentrefertosection5ofRDR3,availableathmrc.gov.uk/international/rdr3.pdf

Ifyouhaveputan‘X’inbox3youshouldmakesurethatyouhavenotputan‘X’inbox1.Pleasecompletebox6orbox7asappropriate.

Page RRN 6

Box 4 If you were resident in the UK for 2012–13

Thestatutoryresidencetestonlycameintoeffectfrom6April2013.Yourresidencestatusforearlieryearscannotbedeterminedbythistest,andwilldependonallthefactsofyourparticularcircumstances.

Putan‘X’inbox4ifyouwereresidentintheUKforthetaxyear2012–13,and•youarenotresidentforthetaxyear2013–14,or•youareresidentforthetaxyear2013–14andanycaseofsplityear

treatmentappliestoyou.

Box 5 If you have made an entry in box 2 and any of your foreign earnings are for an earlier year

Ifallorpartoftheoverseasworkdayreliefamountincludedinbox12onpageAi2oftheAdditional informationpageisformoneyreceivedintaxyear2013–14butearnedinanearliertaxyear,pleaseputan‘X’inbox5.

Boxes 6 and 7 Dates of arrival and departure

IfyouhavecometoliveorworkintheUKpleaseenterthedateyouenteredtheUKinbox6.

IfyouwereresidentintheUKforthetaxyear2013–14becauseyoumetthefirstautomaticUKtestbyspending183ormoredayshere,pleaseenterthefirstandlastdatesonwhichyouwerepresentintheUKduringthetaxyear.

IfyouhavecompletedanextendedperiodofworkintheUKoryouhaveceasedtolivehereforotherreasons,pleaseenterthedateyouleftinbox7.

Box 8 If you were resident in the UK in any of the previous three tax years

Ifyouwereresidentinanyoftaxyears2010–11,2011–12or2012–13,putan‘X’inbox8.

Itisnecessarywhenconsideringtheautomaticoverseastestsandthesufficienttiesteststoknowifyouwereresidentinanyofthepreviousthreetaxyears.Thestatutoryresidencetestonlycameintoeffectfrom6April2013andasaresultyourresidencestatusforearlieryearswillnormallybedeterminedbythefactsofyourparticularcircumstances.Howeveryoucanmakeanelectiontodetermineyourresidencestatusforearlieryearsbyreferencetothestatutoryresidencetest.Thiswillnotaffectyouractualresidencestatusorliabilityforearlieryears;itsimplyallowsyoutousethestatutoryresidencetesttodetermineifyouwereresidentinthethreepreviousyearsforthepurposeofestablishingyourcurrentresidencestatus.Ifyouwishtomakeanelectionyoushouldincludedetailsinthe‘Anyotherinformation’box,box39.Onceanelectionhasbeenmadeitisirrevocable.

Box 9 If you had a home overseas in 2013–14

Pleaseputan‘X’inbox9ifyouhaveahomeoverseasatanypointduringthe2013–14taxyear.PleasereadAnnexAofRDR3formoreinformationaboutwhatconstitutesahome.



Page RRN 7

Box 10 Number of days spent in the UK during 2013–14

Youshouldincludeinbox10allthedaysduring2013–14onwhichyouwereintheUKattheendoftheday(atmidnight).YoumustincludeinthetotalanydayswhenyouwereintheUKattheendofthedayduetoexceptionalcircumstances(seebox11).Youmayexcludetransitdaysfromthisfigure.AtransitdayisadaywhenyouarriveintheUKasapassengerandleavethenextday.BetweenyourarrivalanddepartureyoudonotengageinanyactivitiesunrelatedtoyourpassagethroughtheUK.

Deemed days

IfyouhavebeenresidentintheUKforoneormoreofthetaxyears2010–11,2011–12or2012–13,haveatleastthreeUKtiesandyouarepresentintheUKfor30dayswithoutbeingpresentatmidnight,thedeemingruleapplies.Thismeansthatanydayoverthefirst30thatyouarepresentintheUKatanypointbutarenothereatmidnightwillbedeemedasaUKdayandmustbeincludedinyourentryinbox10.Formoredetailsondeemeddaysreadparagraph3.3oftheRDR3,availableathmrc.gov.uk/international/rdr3.pdf

Box 11 Number of days in box 10 attributed to exceptional circumstances

Youshouldshowinbox11thenumberofdaysspentintheUKbecauseofexceptionalcircumstancesbeyondyourcontrol,forexample,anillnessthatoccurredwhileyouwereintheUKwhichpreventedyoufromtravelling.Otherexamplesofexceptionalcircumstanceswouldbenationalandlocaldisasters,suchascivilunrest,naturaldisastersandtheoutbreakofwar.

Themaximumnumberofdaysthatcanbeattributedtoexceptionalcircumstancesis60inanytaxyear.ReadAnnexBoftheRDR3formoreinformationonexceptionalcircumstancesathmrc.gov.uk/international/rdr3.pdf

Box 12 How many ties to the UK did you have in 2013–14?

Pleaseenterinbox12thenumberofUKtiesyouhadin2013–14.Youshouldlistwhichtiesapplytoyouinthewhitespacenotes.Thetiesthatyouneedtoconsiderareasfollows.

Family tie

Youhaveafamilytieifyour:•husband,wifeorcivilpartner(unlessyouareseparated)•partner,whoyoulivewithashusbandandwifeorascivilpartners•childundertheageof18;specialrulesapplytochildren,pleaseread

RDR3section2athmrc.gov.uk/international/rdr3.pdfisresidentintheUKfor2013–14.

Accommodation tie

Youhaveanaccommodationtiefortaxyear2013–14ifyouhaveaplacetoliveintheUKavailabletoyouforacontinuousperiodof91daysandyouspendatleastonenighttherein2013–14.Iftheavailableaccommodationisthehomeofacloserelativeyoumustspendatleast16nightsthereforanaccommodationtietoexist.

Work tie

Youhaveaworktieifyoudoatleast40daysworkintheUKinthetaxyear2013–14.Tocountasaworkdayyoumustworkformorethanthreehours.

Page RRN 8

90 day tie

Youhavea90daytieifineitherofthetaxyears2011–12or2012–13youwereintheUKformorethan90days(thatis,atmidnight).

Country tie

YouhaveacountrytieiftheUKisthecountryyouarepresentinforthegreatestnumberofmidnightsinthetaxyear2013–14.Thistieonlyneedstobeconsideredifyouwereresidentinoneormoreofthetaxyears2010–11,2011–12and2012–13.

Box 13 Number of workdays you spent in the UK

Pleaseenterinbox13thetotalnumberofdaysonwhichyouworkedformorethanthreehoursintheUKintaxyear2013–14.

Box 14 Number of workdays you spent overseas

Pleaseenterinbox14thetotalnumberofdaysonwhichyouworkedformorethanthreehoursoverseasintaxyear2013–14.

Personal allowances

Claims for UK personal allowances for non-residents and dual residents

Helpsheet304Non-residents – relief under Double Taxation Agreementsgivesyouinformationthatwillbeusefultoyouindecidingifyouareentitledtopersonalallowances.

Boxes 15 and 16 are not mutually exclusive. You may, if appropriate, complete both boxes.

Box 15 If you are entitled to claim personal allowances as a non-resident because of the terms of a Double Taxation Agreement

Pleaseputan‘X’inbox15ifyousatisfyoneoftheconditionslistedinthethreebulletpointsstartingbelowandyouareclaimingpersonalallowancesasanon-residentunderthetermsofaDoubleTaxationAgreement.

Youalsowillneedtogetacertificatefromtheoverseastaxauthoritystatingthatyouareresidenttherefortaxpurposesfortheperiodoftheclaimand,whereappropriate,havedocuments(forexample,apassport)toshowthatyouareanationalofthatcountry.Pleasekeepthecertificateanddocumentsincasetheyareneededlatertosupportyourclaim.

Theconditionsarethat:•youareanationalofBulgaria,IsraelandJamaica,or•youareanational and a residentofArgentina,Australia,Azerbaijan,

Bangladesh,Belarus,Bolivia,Bosnia-Herzegovina,Botswana,Canada,China,Croatia,Cyprus,CzechRepublic,Denmark,Egypt,Estonia,Finland,France,Gambia,Iceland,India,Indonesia,Italy,IvoryCoast(Coted’Ivoire),Japan,Jordan,Kazakhstan,Korea(Republicof),Latvia,Lesotho,Lithuania,Malaysia,Malta,Montenegro,Morocco,NewZealand,Nigeria,Norway,Oman,Pakistan,PapuaNewGuinea,Philippines,Romania,RussianFederation,Serbia,SlovakRepublic(Slovakia),Slovenia,SouthAfrica,Spain,SriLanka,Sudan,Switzerland,Taiwan,Tajikistan,Thailand,TrinidadandTobago,Tunisia,Turkey,Turkmenistan,Uganda,Ukraine,Uzbekistan,Venezuela,VietnamorZimbabwe,or

AMore guidanceFor more general information on Double Taxation Agreements and entitlement to UK personal allowances, go to hmrc.gov.uk/taxtreaties/dtdigest.pdf



Page RRN 9

•youarearesidentofAustria,Barbados,Belgium,Burma,Fiji,Greece,Ireland,Kenya,Luxembourg,Mauritius,Namibia,Netherlands,Portugal,Swaziland,Sweden,SwitzerlandorZambia.

Exceptions:

Youshouldnotputan‘X’inbox15,ifyouarearesidentofKenya,MauritiusorZambiaoraresidentbutnotacitizen,ofAustria,Belgium,Luxembourg,Portugal,SwedenorSwitzerlandandyourincomeconsistssolelyofdividends,interestandroyaltiesoranycombinationofthem.Iftheseconditionsapplythenyouarenotentitledtopersonalallowances.

Box 16 If you are entitled to claim personal allowances as a non-resident on some other basis, or as a dual resident remittance basis user under the terms of certain Double Taxation Agreements (DTAs)

Pleaseputan‘X’inbox16ifyouarenotresidentintheUKand,underoneormoreoftheconditionslistedbelow,areentitledunderUKlawtothesamepersonalallowancesandreliefsthatwouldbeavailabletoyouifyouwereresidentintheUK.

Thesevenconditionsare:•youareaBritishcitizenoranationalofanothermemberstateofthe

EuropeanEconomicArea(EEA).TheEEAmemberstatesare:Austria,Belgium,Bulgaria,Cyprus,CzechRepublic,Denmark,Estonia,Finland,France,Germany,Greece,Hungary,Iceland,Ireland,Italy,Latvia,Liechtenstein,Lithuania,Luxembourg,Malta,Netherlands,Norway,Poland,Portugal,Romania,SlovakRepublic(Slovakia),Slovenia,Spain,SwedenandUnitedKingdom

•youareresidentintheIsleofManortheChannelIslands•youhavepreviouslyresidedintheUKandareresidentabroadforthesake

ofyourhealth,orthehealthofamemberofyourfamilylivingwithyou•youare,orhavebeen,employedintheserviceoftheBritishCrown•youareemployedintheserviceofanyStateundertheprotection

ofHerMajesty•youareemployedintheserviceofanymissionarysociety•youareawidow,widowerorsurvivingcivilpartnerwhoselatehusband,

wifeorcivilpartnerwasintheserviceoftheBritishCrown.

Dual residents claiming the remittance basisIfyouclaimtheremittancebasisandinthetaxyearyouareresidentinboththeUKandinoneofthecountrieslistedbelow,youwillkeepyourentitlementtoUKpersonalallowancesandtheannualexemptamount(AEA)forchargeablegains,whichanindividualwhoisresidentonlyintheUKandclaimingtheremittancebasisisnotentitledto.

Putan‘X’inbox16ifyou:•arecompletingbox28claimingtheremittancebasisoftaxationandan

entryinbox29isnotappropriate,andyou•areclaimingtobe‘dualresident’andundertheDTAthattheUKhas

withtheothercountryinwhichyouareclaimingtoberesident,youareregardedasresidentinthatothercountry.

Thelistofcountriesis: –Austria,Barbados,Belgium,Fiji,Ireland,Kenya,Luxembourg,

Mauritius,Namibia,Netherlands,Portugal,Swaziland,Sweden,SwitzerlandandZambia.

Page RRN 10

Thisisnolongeranexclusionfromonlinefiling.Howeverifthisboxisnotcompleted,personalallowanceswillnotberetained.

Enterdetailsinthe‘Anyotherinformation’box,box39oftheothercountryinwhichyouclaimtoberesident.

Box 17 Enter the code(s) for the country or countries of which you are a national and/or resident

Whereyouhaveputan‘X’inbox15and/orbox16,youwillneedtoenterinbox17thecode(s)forthecountryorcountriesofwhichyouareanationaland/orresident.

YoucangettherelevantcountrycodesfrompagesFN20toFN22oftheForeign notes.Downloadthesenotesfromhmrc.gov.uk/sa106-notesorphonetheSelfAssessmentOrderlineforacopy.

Residence in other countries and Double Taxation Relief

Box 18 Enter the code(s) for the country or countries, other than the United Kingdom, in which you were resident for tax purposes for 2013–14

Enterinbox18thecountrycode(s)forthecountryorcountries(otherthantheUnitedKingdom(UK))inwhichyouwereresidentfortaxpurposes.YoushouldcompletethisboxevenifyouareresidentinacountrywithwhichtheUKdoesnothaveaDoubleTaxationAgreement.Ifyouliveorlivedinacountrythatdoesnothaveaformalresidencecriterionfortaxorotherpurposes,pleaseusethecode(s)forthatcountry.

YoucangettherelevantcountrycodesfrompagesFN20toFN22oftheForeign notesathmrc.gov.uk/sa106-notes

Box 19 If you were also resident in either or both of the countries entered in box 18 for 2012–13, enter the appropriate code(s)

Youshouldonlyputanentryinbox19ifyouhaveputan‘X’inbox18,andyouwerealsoresidentineitherorbothofthecountriesenteredforbox18in2012–13inadditionto2013–14.Thesameinformationprovidedforthecompletionofbox18willalsoapplyforbox19.

YoucangettherelevantcountrycodesfrompagesFN20toFN22oftheForeign notes.

Box 20 Amount of Double Taxation Agreement income for which partial relief is being claimed

Completebox20ifyouareclaimingpartialrelieffromUKtaxunderaDoubleTaxationAgreementthatdoesnotrequiretheUKtoexempttheincomebutdoeslimittherateatwhichtheUKcantaxtheincome.

Youshouldentertheamountofsuchincomeinthisboxsothatitcanbetakenintoaccountindetermininganylimitonlossrelieforinterestreliefavailabletoyouforthisyear.

IncomethatisfullyexemptedfromUKtaxbyaDoubleTaxationAgreementshouldnotbeincludedintheamountenteredinthisbox.

AMore guidancePages RRN 17 and RRN 18 give more information about residence in other countries and Double Taxation Agreements.



Page RRN 11

Box 21 Relief under Double Taxation Agreements between the UK and other countries – amount claimed because of an agreement awarding residence to another country (see Helpsheet 302)

Completebox21ifyouintendtoclaimreliefunderthetermsofaDoubleTaxationAgreementasa‘dualresident’.

Inadditiontocompletingbox21,completeandsendintheappropriateclaimforminHelpsheet302Dual residents insupportofyourclaim,availableathmrc.gov.uk/helpsheet302

Wherethestatementofreliefintermsoftaxinbox21wouldrequiretheperformanceofunnecessarycalculations,pleaseputabriefexplanatorynoteofthebackgroundtotheclaiminthe‘Anyotherinformation’box,box39.

Whereyouareclaimingreliefandyouwereresidentfortaxpurposesinacountryorcountrieswithataxyearthatfellpartlywithin2013–14andpartlywithin2012–13,pleasegivebriefdetailsinthe‘Anyotherinformation’box,box39.Youwillalsoneedtogetacertificatefromtheoverseastaxauthorityshowingthattheyregardyouasaresidentunderthedomestictaxlawofthatcountryfortheperiodofclaim.

Box 22 Relief claimed because of other provisions of the relevant Double Taxation Agreements (see Helpsheet 304)

Completebox22ifyouareanon-residentandwanttomakeaclaimforDoubleTaxationRelief.Moredetailsaboutthevarioustypesofincomethatreliefcanbeclaimedon,andwheretogoformorehelpandadvice,areprovidedonpagesRRN17andRRN18.

Wherethestatementofreliefintermsoftaxinbox22wouldrequiretheperformanceofunnecessarycalculations,pleaseputabriefexplanatorynoteofthebackgroundtotheclaiminthe‘Anyotherinformation’box,box39.

Inadditiontocompletingbox22,completeandsendintheappropriateclaimforminHelpsheet304Non-residents – relief under Double Taxation Agreements, availableathmrc.gov.uk/helpsheet304

DomicileIfyouarenotusingtheremittancebasisoftaxation,oryourdomicileisnototherwiserelevantfortheyearended5April2014,donotcompleteboxes23to27.

Temporary non-residence and capital gains

Broadly,capitalgainsmadeinyearsthroughoutwhichyouwerenotresidentintheUKmaybetaxablewhenyouresumeresidenceintheUK(onyouryearofreturn)if:•youreturnedtotheUKduring2013–14followingaperiodofresidence

abroad(theyearofreturn)•youbecamenotresidentintheUKin2008–09,2009–10,2010–11,

2011–12or2012–13(the‘yearofdeparture’)•betweenthetaxyearwhenyouwerelastresident,thatis,theyearof

yourdeparture,andtheyearofyourreturntherewerefewerthanfivefulltaxyears,and

•youwereresidentorordinarilyresidentforatleastpartofeachoffouroutoftheseventaxyearsimmediatelypriortotheyearofdeparture.

Youcanfindmoreinformationabouttemporarynon-residentsandCapitalGainsTaxinHelpsheet278,availableathmrc.gov.uk/helpsheet278

AMore guidanceMore information to help you understand your domicile status is available online, go to hmrc.gov.uk/cnr/rdr1.pdf (the section on domicile) and on pages RRN 19 to RRN 22.

Page RRN 12

IfyouareindoubtaboutwhethergainsfromabroadhavebeenreceivedintheUK,orthepreciseamountofthatincomeorgains,askusoryourtaxadviserforhelp.

Box 23 If you are domiciled outside the UK and it is relevant to your Income Tax or Capital Gains Tax liability

Ifyourdomicileisrelevantfortheyearended5April2014,putan‘X’inbox23.Pleasealsocompleteboxes24to27asappropriate.

Box 24 If 2013–14 is the first year you have told us that your domicile is outside the UK

If2013–14isthefirstyearthatyouhaveclaimedtobedomiciledoutsidetheUKfortaxpurposes,pleaseputan‘X’inbox24evenifyouhaveneverbeendomiciledwithintheUK.

Box 25 If you have put ‘X’ in box 23 and have a domicile of origin within the UK, enter the date on which your domicile changed

Whencompletingbox25,ifyoudonothaveaspecificdateonwhichyourdomicilechanged,pleaseuse5Aprilattheendofthetaxyearinwhichthechangetookplace.Ifthetaxyearisanapproximation,pleasemakeanoteofthisinthe‘Anyotherinformation’box,box39.

Box 26 If you were born in the UK but have never been domiciled here

Pleaseput‘X’inbox26ifyouwerebornintheUKbutyourdomicileoforiginisoutsidetheUK.Pleasealsocompleteboxes28to38asappropriate.

Box 27 If you have put ‘X’ in box 23 and you were born outside the UK, enter the date that you came to live in the UK

Thedateinbox27shouldbethatonwhichyoustartedtoliveintheUKasyourhome.InmanycasesthedatethatyoucametoliveintheUKwillbethesameasthedateonwhichyoufirstbecameresidentherefortaxpurposes.ThemainexceptionwilloccurifyouareresidentintheUKsimplybecauseofthenumberofdaysthatyouhavespenthere.Pleasedonotcompletebox27ifyoudonotliveintheUK.

Remittance basis IfyouareresidentintheUKyouwillnormallypaytaxonthe‘arisingbasis’.Thismeansthatyouwillpaytaxonallofyourincomeasitarisesandonyourgainsastheyaccrue,whereverthatincomeandthosegainsareintheworld.YoucanfindmoreinformationonthearisingbasisinRDR1Guidance Note: Residence, Domicile and the Remittance Basis, availableathmrc.gov.uk/cnr/rdr1.pdf

TheremittancebasisisanalternativebasisoftaxationthatisavailabletosomeindividualswhoareresidentintheUK.Youcanclaimtheremittancebasisbycompletingbox28.

Ifyoudonotwanttoclaimtheremittancebasisfor2013–14donotcompleteboxes28to38.

AMore guidanceMore information about the remittance basis is given on pages RRN 20 to RRN 24.



Page RRN 13

Box 28 If you are making a claim for the remittance basis for 2013–14

YoucanclaimtobetaxedontheremittancebasisonyourforeignincomeandgainsifyouareresidentbutnotdomiciledintheUK(youhaveputan‘X’inbox23).

Ifyouareclaimingtheremittancebasis,putan‘X’inbox28.Youmustalsocompletebox23toconfirmyourstatus.Youshouldalsocompleteboxes29to32asappropriate.

Ifyouhavecompletedbox12onpageAi2oftheAdditional informationpages(seepageAiN18oftheAdditional information notes)onthebasistheamountisnottaxablebecauseithasnotbeenremittedtotheUK,thenyoumustalsocompletebox28oftheResidence, remittance basis etc. pages.Box29ontheResidence, remittance basis etc.pagesshouldnotbecompletediftheamountyouareenteringinbox12ismorethan£1,999.

Box 29 If your unremitted income and capital gains for 2013–14 is less than £2,000

Putan‘X’inthisboxif:•youareclaimingtheremittancebasisin2013–14,and•youhaveforeignincomeand/orgainsarisingin2013–14,and•lessthan£2,000ofthisforeignincomeand/orgainsremainsunremitted

totheUKat5April2014.

Ifyouhaveputan‘X’inthisboxyoumustalsoputan‘X’inbox28,andalsoinboxes30,31and32ifappropriate.

Havinglessthan£2,000unremittedforeignincomeand/orgainsmeansthatyoucanusetheremittancebasiswithoutlosingyourentitlementtoUKpersonalallowancesandtheannualexemptamount(AEA)forchargeablegains.

Ifyouhavelessthan£2,000unremittedforeignincomeand/orgainsfromthetaxyear,youdonothavetocompleteataxreturnjusttotellusyouareusingtheremittancebasis;butifyouhaverequestedorhavebeensentataxreturnthenyoumustcompleteandsendittous.

Foreign income and/or gains received in currency other than sterlingTocalculatetheamountofyourforeignincomewhichisnotremittedsoastodeterminewhetheryourunremittedincomeandgainsfortheyearisbelow£2,000,youshould,foreachcurrency,deductthetotalforeignincomeofthetaxyearthatwasremittedintheyearfromthetotalforeignincomearisinginthetaxyear.Translatethebalanceforeachcurrencyintosterlingusingtheexchangerateonthelastdayofthetaxyear(5April2014)andtotalthesterlingamountstocalculatetheamountof‘unremitted’foreignincome.

Thismethodofcalculationappliesfordeterminingtheamountofunremittedforeignincomefortheunder£2,000thresholdpurposeonly.Adifferentmethodisusedforcalculatingtheamountofforeignincomeremitted.

Tocalculatetheamountofyourunremittedforeignchargeablegainsusesterlingtranslationsatthedateofacquisitionandthedateofdisposal.

AMore guidanceMore detailed information about exchange rates is available in the Residence, Domicile and Remittance manual. Go to hmrc.gov.uk/manualsa-zExchange rates can be found at hmrc.gov.uk/extrate

Page RRN 14

Box 30 If you were UK resident for 2013–14 and for 12 or more of the preceding 14 tax years

Putan‘X’inbox30if:•youhavebeenalong-termresidentintheUK,thatis,youhavebeen

residentfor12ormoreoftheprevious14taxyears,and•youareclaimingtheremittancebasisoftaxationfor2013–14andhave

putan‘X’inbox28.

Ifthisappliestoyouthenyouwillpaytheremittancebasischarge(RBC)of£50,000unlessoneoftheexceptionsbelowapplies–seethenotesonpageRRN18.TheonlyexceptionswhereyoudonothavetopaytheRBCareif:•youhavelessthan£2,000unremittedforeignincomeand/orgainsfrom

2013–14.Ifthisappliescompletebox29,or•youwereunder18at5April2014.Ifthisappliesalsocompletebox32.

Ifyouputan‘X’inbox31(butnotinboxes29or32becausetheydonotapply)thenyoushouldalsocompleteboxes33to39asappropriate.

Box 31 If you were UK resident for 2013–14 and for seven or more of the preceding nine tax years

Putan‘X’inbox30if:•youhavebeenresidentintheUK,forsevenormoreoftheprevious

ninetaxyears,(butlessthan12oftheprevious14taxyears),and•youareclaimingtheremittancebasisoftaxationfor2013–14andhave

putan‘X’inbox28.

Ifthisappliestoyouthenyoumustpaytheremittancebasischarge(RBC)of£30,000unlessoneoftheexceptionsbelowapplies–seethenotesonpageRRN22.

TheonlyexceptionswhereyoudonothavetopaytheRBCareif:•youhavelessthan£2,000unremittedforeignincomeand/orgainsfrom

2013–14.Ifthisappliescompletebox29,or•youwereunder18at5April2014.Ifthisappliesalsocompletebox32.

Ifyouputan‘X’inbox31(butnotinbox29orbox32becausetheydonotapply)thenyoushouldalsocompleteboxes33to39asappropriate.

Box 32 If you were under 18 on 5 April 2014

Ifbox32appliestoyoubecauseyouwereunder18yearsofageat5April2014,youwillnotneedtopaytheremittancebasischarge(RBC),evenifyouarea‘long-termresident’andhavecompletedbox30orbox31.

However,youwillstillloseyourentitlementtopersonalallowancesandtheannualexemptamount(AEA)ifyouhavecompletedbox28andclaimedtheremittancebasis,unlessyouhavelessthan£2,000unremittedforeignincomeand/orgainsfor2013–14andsohavealsocompletedbox29.Ifyouarecalculatingyourowntaxdonotforgettoreflectthelossofallowancesinyourtaxcalculation.

Boxes 33 and 34 Amount of nominated income/capital gains

Ifyouputan‘X’onlyinboxes28and30orbox31youmustalsocompleteboxes33and34.

AMore guidanceExchange rates can be found at hmrc.gov.uk/exrate



Page RRN 15

Theremittancebasischarge(RBC)isIncomeTax,CapitalGainsTax,oracombinationofthetwo,chargedonunremittedforeignincomeand/orgainsonthearisingbasis.WhenyoupaytheRBCyoumusttellusonwhatincomeorgainstheRBCischargeablebynominatingtheappropriateincomeand/orgains.Youdothisbyenteringtheamountofnominatedincomeinbox33and/orenteringthenominatedforeigngainsinbox34.

Forthepurposesofdeterminingtheamountofnominatedforeignincomeyoushouldconverteachamountintosterlingattherateofexchangeatthetimewhentheincomearose.Foreigngainsarealwayscomputedinpoundssterlingusingtheratesofexchangeprevailingatthetimewhenthegainiscomputedandwhenallowableexpenditurewasincurred.

TheCapitalGainsTaxrateforindividualsis18%or28%.Thetaxratedependsonthetotalamountofyourtaxableincome.YoucanfinddetailsoftheCapitalGainsTaxratesintheCapital gains summary notes,availableathmrc.gov.uk/sa108-notes

Example 1 Nominating both foreign income and/or capital gainsHenri has claimed the remittance basis and has been UK resident for the past 12 years and his unremitted foreign income for the year 2013–14 is as follows:

Foreign bank interest £80,000 Foreign employment income £80,000 Foreign capital gains £100,000

Henri is a higher-rate taxpayer, and due to the level of his income is liable to the additional 45% tax rate (payable on any income over £150,000), so his RBC calculation is as follows.

He decides to nominate £74,612 of his bank interest and £70,000 of his capital gains.

£11,112 x 45% = £5,000 Income Tax £63,500 x 40% = £25,400 Income Tax £70,000 x 28% = £19,600 Capital Gains Tax

Henri would enter the £74,612 nominated income amount in box 33 and the £70,000 nominated capital gains amount in box 34.

Ifyouarecalculatingyourowntax,theIncomeTaxorCapitalGainsTaxelementsoftheRBCwillneedtobeincludedintheamountoftotaltax.IfyouareusingtheTax calculation summarypageaddeither£30,000or£50,000totheamountinbox1.DonotforgettoreflectlossofpersonalallowancesandAEAinyourtaxcalculation.

TheIncomeTaxelementoftheRBCwhichrelatestonominatedincomewillbeavailabletocoverUKGiftAiddonations.

IfyouareliabletopaytheRBC,youmustenteranominatedfigureofatleast£1ineitherbox33orbox34.Ifyoudonotnominateenoughincomeand/orcapitalgainsliabletoproduceeitherthe£30,000or£50,000RBCthen,aswellaswhatyouactuallynominated,youwillbetreatedasnominatingsufficientadditionalincometoincreasetheRBCtoeither£30,000or£50,000whicheverisapplicable.However,thereareconsequencesinrelationtoForeignTaxCreditReliefandthepreventionofdoubletaxationifyouchoosetomakeaninsufficientorunder-nomination.YoushouldrefertotheadditionalguidanceandlookattheexamplesintheResidence,DomicileandRemittancemanual,availableathmrc.gov.uk/manualsa-z

Page RRN 16

Example 2Ben has claimed the remittance basis for 2013–14 and his unremitted foreign income and/or gains are as follows:

Foreign bank interest £75,000 Foreign employment income £80,000 Foreign capital gains £25,000

Ben is a higher-rate taxpayer. He chooses to nominate only his £25,000 capital gains. The RBC so far consists of:

£25,000 x 28% = £7,000 Capital Gains Tax

In this case the RBC must total £30,000, so an amount of Income Tax of £23,000 is required. Therefore, £56,806 of additional income is to be ‘treated’ as nominated, as Ben’s income exceeds £150,000 he will be liable to the 45% additional rate band

£5,556 x 45% = £2,500 Income Tax £51,250 x 40% = £20,500 Income Tax The RBC therefore consists of £7,000 Capital Gains Tax and £23,000 Income Tax.

Youshouldprovideadditionalinformationaboutyournominatedincomeandgainsinthe‘Anyotherinformation’box,box39(seethenotesforbox39).

Box 35 Adjustment to payments on account for capital gains

Ifyouhavemadeanominationofcapitalgainsinbox34,thenyoumustcompletebox35.

OnlytheIncomeTaxelementoftheRBCistakenintoaccountincalculatingthepaymentsonaccount.CapitalGainsTaxisneverincludedincalculationsofpaymentsonaccountandanypartoftheRBCcomingfromcapitalgainswillnotformpartofthefollowingyearspaymentsonaccount.PleaseentertheamountofCapitalGainsTaxincludedineitherthe£30,000orthe£50,000RBC.

Ifyouarecalculatingyourowntax,pleaseexcludetheamountinbox35inyourcalculationofpaymentsonaccount.IfyouareusingtheTax calculation summary page,yourfirstpaymentonaccountfor2014–15inbox10willnotincludeanypartoftheamountinbox35.

Box 36 If you have remitted nominated income or gains during 2013–14

Putan‘X’inbox36ifyouhaveremittedanynominatedforeignincomeand/orgainsinexcessof£10foranytaxyearduring2013–14.Iftheamountofremittednominatedincomeand/orgainscoversmorethanoneyear,pleasegiveabreakdowninthe‘Anyotherinformation’box,box39.

Anyoftheforeignincomeand/orgainswhichyouhavenominatedandwhichyouremittotheUKwillnotbetaxedagain.However,therearecertainorderingrulesifyouremitanynominatedforeignincomeand/orgainsinexcessof£10whileanyforeignincomeand/orgainsthatwerenotsonominatedremainoverseas.

Youcanremitnominatedincomeand/orgainsforanytaxyearforwhichanominationhasbeenmadewithoutbecomingsubjecttotheidentificationrulesaslongasitiswithinthe£10aggregatelimit.



Page RRN 17

Box 37 If you are claiming relief from UK tax for foreign income and/or gains invested in a qualifying business during 2013–14

Ifyouhavemadeanyinvestmentsinqualifyingcompaniesunderthebusinessinvestmentreliefprovisionsforremittancebasistaxpayersyoushouldcompletebox37.

Box 38 If you have previously claimed relief for a qualifying investment and the investment no longer qualifies for relief

Youshouldputan‘X’inbox38andthengivedetailsoftheamountoftheinvestmentthatnolongerqualifiestogetherwiththecompanyregistrationnumberinthe‘Anyotherinformation’box,box39.

Box 39 Any other information

Youmustgivedetailsifyouhavecompletedboxes33or34,35and38.Weneedthisinformationtovalidateyournomination,andtoconfirmanyUKGiftAiddonations,DoubleTaxationReliefclaimsandsoforth.

Youshouldidentifythepreciseincomeandgainsyouhavenominatedatboxes33and/or34,includingthecountryoforiginandthetypeandsourceoftheincome(forexample,thebankaccountoremploymenttowhichitrelates),showthecomputationofthegain(ifapplicable)andtheexchangeratesused.

Ifyouhavedeductedanyexpensesorlossesfromtheincomeorgainsinarrivingatthefinaltaxableamount,thenfulldetailsoftheamountsandnatureofthoseexpensesorlossesmustalsobegiven.

Allotheradditionalinformationaskedforinboxes13,21,22and36shouldalsobeincludedhere.

More information

Considering your residence status

ItisimportantthatyouunderstandhowtoworkoutifyouareresidentintheUK(England,Wales,ScotlandandNorthernIreland)asyourindividualcircumstanceswillaffectwhatUKtaxyouneedtopay.FormoreinformationonhowtodetermineyourresidencestatuspleaserefertoRDR3Guidance Note: Statutory Residence Test (SRT),availableathmrc.gov.uk/international/rdr3.pdf

Residence in other countries and Double Taxation Relief

Double Taxation Agreements

ADoubleTaxationAgreement(DTA)isanarrangementbetweenthegovernmentsoftwocountriestoresolvetaxationissuesaffectingthemboth.Agreementscontaindetailedprovisionsdesignedtoeliminate,orrelieve,thedoubletaxationthatcanoccurwhenincomearisesinonecountrytoaresidentofanother.Theydothisbyeitherexemptingtheincomefromtaxinonecountry,orbyreducingtherateatwhichtaxischargedinonecountryandallowingcreditforthatreducedrateoftaxintheother.

AMore guidanceIf you are resident in the UK and another country, please see chapter 12 of RDR1 which tells you about Double Taxation Agreements (DTAs). Go to hmrc.gov.uk/cnr/rdr1.pdf

Page RRN 18

Double Taxation Relief – dual residence

It is possible to be resident in the UK under our tax rules and at the same time be considered as resident in another country under that country’s rules. This is called dual resident.

IftheothercountryisonewithwhichtheUKhasaDTA,theagreementwillusuallyprovidespecialrulesfordetermininginwhichofthetwocountriesyouareregardedasaresident(butonlyforthepurposeofapplyingitsdetailedprovisions).

Ifyouaredualresident,youmaybeentitledtoclaimtheexemptionsandreliefsfromUKtaxgrantedtoresidentsofthatothercountry.

TherulesfordeterminingresidenceforthepurposesofaDTAcanbecomplex.Forexample,theylookatyour‘permanenthome’,yourpersonalandeconomicrelationswithbothcountries,whereyouhavean‘habitualabode’,andyournationality.Someofthesetermshavespecialmeaningsandinterpretationofthemisnotalwaysstraightforward.Notallagreementshaveidenticalrules,orasimilareffectontaxliability.

Youcanfindthepreciseconditionsforexemptionorreliefintherelevantagreement.Ifyouneedmorehelp,askusoryourtaxadviser.Helpsheet302Dual residentsgivesyouinformationthatwillallowyoutodecidewhetheryouarearesidentoftheUKoranothercountryforthepurposesofapplyingtheprovisionsoftheDTAbetweentheUKandthatothercountry.

Non-UK residents and Double Taxation Agreements

IfyouarenotresidentintheUKbutresidentinacountrywithwhichtheUKhasaDTA,youmaybeabletogetrelieffromUKtaxunderthetermsofthatagreementforincomearisingintheUKfrom:•pensions(althoughonlyafewagreementsallowreliefforUKgovernment

pensions)andsomeannuities•royalties•propertyincomedistributions•interest.

Someagreementsrequireyoutobesubjecttotaxintheothercountryontheincomeinquestion,beforeyougetrelieffromUKtax.Youcanfindthepreciseconditionsforexemptionorreliefintherelevantagreement.Itisnotpossibletogivefulldetailshereastheyvarybetweenagreements.ToclaimDoubleTaxationReliefdownloadHelpsheet304Non-residents – relief under Double Taxation Agreements, from hmrc.gov.uk/helpsheet304orphonetheSelfAssessmentOrderlineforacopy,andcompletebox21toclaimrelief.

Non-residents and UK property income

EventhoughyoumaybenotresidentintheUKyoucouldbeliabletoUKtaxonincomearisingintheUK,includingpropertyincome.Thisissowhetherornottaxisdeductedbyyourlettingagentortenants,ifthereisnolettingagent.YoushouldcompletetheUK propertypages,availableathmrc.gov.uk/sa105orphonetheSelfAssessmentOrderlineforacopy.

YouarenotliabletoUKtaxifyourtotalUKtaxableincome(includingnetpropertyincome)islessthananyUKtaxallowancetowhichyoumaybeentitled.

Anon-residentindividualwhoisentitledtoUKpropertyincomemay,incertaincircumstances,applytoreceivethatincomewithnotaxdeducted.Askusaboutthis.YoushouldcompletetheUK propertypages.

AMore guidanceTo help you determine your residence and domicile status, go to hmrc.gov.uk/ cnr/rdr1.pdf



Page RRN 19

Domicile

IfyouarenotresidentintheUKyouwillnotusuallyneedtoconsiderdomicileforIncomeTaxandCapitalGainsTaxpurposes.Domicileisrelevantonlyifyouhaveforeignincomeand/orgainsduringataxyear.Ifyoudonot,thenyourdomicilestatushasnobearingonyourUKIncomeTaxorCapitalGainsTaxliability.

Domicileisagenerallawconceptandmayhavewiderimplicationsforyourpersonalaffairs.Therearemanyfactorsthataffectyourdomicile.SomeofthemainpointsyoushouldconsiderifyouareclaimingnottobedomiciledintheUKare:•youcannotbewithoutadomicile•youcanonlyhaveonedomicileatatime•youarenormallydomiciledinthecountrywhereyouhaveyour

permanenthome•yourexistingdomicilewillcontinueuntilyouacquireanewone•domicileisdistinctfromnationalityandresidence,althoughbothcanhave

animpactonyourdomicile.YoumayberesidentintheUKbuthaveadomicilesomewhereelse

•thefactthatyouregisterandvoteasanoverseaselectorisnotnormallytakenintoaccountwhendecidingwhetherornotyouaredomiciledintheUK.

ReferencestobeingdomiciledintheUKarereferencestobeingdomiciledinanypartoftheUK.

TherearethreetypesofdomicileforIncomeTaxandCapitalGainsTaxpurposes:•domicileoforigin•domicileofchoice•domicileofdependence.

Domicile of origin

Younormallyacquireadomicileoforiginfromyourfatherwhenyouareborn.Itneednotbethecountryinwhichyouwereborn.Adomicileoforiginmaychangeasaresultofadoptionandisnoteasytodisplace.Forexample,evenifyouleavethecountryofyourdomicileoforigin,youwillcontinuetobedomiciledthereuntilyouacquireadomicileofchoiceelsewhere.

Domicile of choice

Youhavealegalcapacitytoacquireanewdomicileattheageof16.Broadly,toacquireadomicileofchoice,youmustleaveyourcurrentcountryofdomicileandsettleinanothercountry.

Domicile of dependence

Untilyouhavethelegalcapacitytochangeit,yourdomicilewillfollowthatofthepersononwhomyouarelegallydependent.Ifthedomicileofthatpersonchanges,youwillautomaticallyacquirethesamedomicile,inplaceofyourdomicileoforigin.

Before1974amarriedwomanautomaticallyacquiredherhusband’sdomicile.Asamarriedwomanwhomarriedbefore1974,youwouldkeepyourhusband’sdomicileuntilyoulegallyacquireanewdomicile.AnexceptiontothisruleistheDTAbetweentheUKandtheUSA,whichprovidesthatamarriagebefore1974betweenawomanwhoisaUSnationalandamandomiciledwithintheUKisdeemedtohavetakenplaceon1January1974.

AMore guidanceMore guidance on all of the remittance basis rules is available in RDR1 or in the remittances technical manual. Go to hmrc.gov.uk/manualsa-z

Page RRN 20

Relevance of your domicile to your tax liability

Havingreadtheguidelineson‘Domicile’onpageRRN19,ifyouthinkyouarenotdomiciledintheUKyoumustnowdecidewhetherdomicilehasanyimmediaterelevancetoyourUKtaxliability.Yourdomicilestatusisgenerallyonlyrelevantifyouareclaimingtheremittancebasisoftaxationfor2013–14foryourforeignincomeand/orgains;pleaseseethenotesstartingbelow.

Remittance basis

Substantialchangesweremadetotheremittancebasisoftaxationfrom6April2008,withfurtherchangesfrom6April2012.Ifyouhaveusedtheremittancebasisinpreviousyearsandhaveremittedanyincomeorgainsin2013–14,and/orifyouareplanningtousetheremittancebasisthisyear,youarestronglyadvisedtoalsolookattheadditionalguidanceonourwebsitewhichgivesmoredetailonallthesechanges.

Ifyoudonotclaimtousetheremittancebasisyouwillusuallybetaxedonyourworldwideincomeandgainsinthenormalway.Youmayalsobechargeableonanyincomeandgainsthataroseinapreviousyear,ayearforwhichyouweretaxedontheremittancebasisiftheyarebroughtto,receivedorusedintheUKintheyear.

Using the remittance basis without completing a tax return

Normallyyoumustclaimtousetheremittancebasisonthesepagesofyourtaxreturn.Howeverinsomecircumstances,andaslongasyoumeetcertainrequirements,youmaybetaxedontheremittancebasiswithoutneedingtocompleteataxreturn.Broadly,thiswillapplyonlyifyouarenotdomiciledintheUKbutareworkinghereandyouhave:•remittedforeignincomeand/orgainsoflessthan£2,000forthe

taxyear,or•youhavebeenresidentintheUKforfewerthansevenofthenine

taxyearsbefore2013–14and —youhavenoforeignincomeand/orgainsandnoUKincomeand

gains(excepttaxedUKinvestmentincomeoflessthan£100),and —youhadnotaxableremittancesofyourforeignincomeand/orgains

totheUKduring2013–14.

Evenifthesecriteriaapply,ifyouneedtocompleteataxreturnforsomeotherreason,forexample,youreceiveanuntaxedsourceofincome,youshouldclaimtheremittancebasisusingbox28.

Ifyoumeetthenecessary‘requirements’abovebutyoudonotwanttheremittancebasistoapplyautomatically,youwillneedtocompleteataxreturndeclaringyourforeignincomeand/orgainsonthenormalarisingbasis.YoudonotneedtocompletetheseSA109pages,butyoumaywanttonotethatyouarenotusingtheremittancebasisinthe‘Anyotherinformation’box,box19onyourtaxreturn.

FormoreinformationonthisyoucanrefertoRDR1Guidance Note: Residence, Domicile and the Remittance Basis.

Consequences of claiming the remittance basis

IfyouclaimtheremittancebasisthismeansthatyouareliabletoUKtaxonyourforeignincomeand/orgainsonlywhentheseareremitted,thatisbroughtto,orreceivedorusedintheUKinanyway(seepageRRN23forthemeaningof‘remittedtotheUK’).YoushouldenterthefullamountonlyofwhatyouhaveremittedtotheUKin2013–14intherelevantboxesonyourtaxreturn.



Page RRN 21

Example 3Ian is resident but not domiciled in the UK. He has claimed the remittance basis for 2013–14, and for earlier years too. He opened an overseas interest-bearing bank account in 2009–10 and interest arose as follows:

2010–11 2011–12 2012–13 2013–14

£200 £400 £500 £500

If none of the interest was received in the UK in 2010–11, 2011–12 or 2012–13, but £800 was brought to the UK in 2013–14, Ian will be liable to UK Income Tax for 2013–14 on £800, even though only £500 arose in that year. Ian will enter £800 on the Foreign pages.

Ifyoudonotwanttousetheremittancebasisforforeignincomeand/orgainsarisingin2013–14donotcompleteboxes28to38.Instead,youshouldenterallyourincomeandgainsarisingin2013–14onyourtaxreturn.Ifyouusedtheremittancebasisinearlieryearsyoushouldalsotellusaboutanyremittancesofforeignincomeand/orgainsthataroseinthoseearlieryearsbutwereremittedin2013–14,ontherelevantpagesofyourtaxreturn.

Loss of personal allowances and annual exempt amount

Ifyouclaimtheremittancebasisoftaxationfor2013–14youwillloseyourentitlementtoUKpersonalallowancesandtheannualexemptamount(AEA)forcapitalgains,unlessbox29appliestoyou.Ifyouarecalculatingyourowntax,donotforgettoreflectthelossoftheseinyourtaxcalculation.

Themainexceptiontothisiswhereyouhaveforeignincomeand/orgainsarisingin2013–14ofwhichlessthan£2,000remainsunremittedtotheUKat5April2014.Youwillkeepyourpersonalallowancesinthissituation.FormoreinformationreadRDR1 Guidance Note: Residence, Domicile and the Remittance Basis, availableathmrc.gov.uk/cnr/rdr1.pdf

Dual residents

Theotherexceptionisifyouare‘dualresident’(seepageRRN17),youshouldnowcompletebox16wherethisisthecase.Box16providesmoredetailsonthispoint.

Example 4Martha is resident but not domiciled in the UK in 2013–14.

She receives interest of £20,000 on an offshore bank account, of which she transfers £19,000 to the UK in 2013–14. She has no other foreign income or gains in the year.

Martha decides to use the remittance basis. She shows £19,000 interest on the Foreign pages. She has less than £2,000 unremitted income and gains from 2013–14 so she will not lose her personal allowances and annual exempt amount (AEA).

Remittance basis charge

Ifyouclaimtheremittancebasisfor2013–14andyouhavebeenresidentintheUKforsevenormoreofthepreviousninetaxyears(thatis,atleastsevenoutofthetaxyearsbetween2004–05and2012–13),youmayhavetopaytheremittancebasischarge(RBC)of£30,000.IfyouhavebeenresidentintheUKfor12ormoreoftheprevious14taxyears(thatis,atleast12outofthetaxyearsbetween1999–2000and2012–13),youmayhavetopaytheremittancebasischarge(RBC)of£50,000.TheRBCisanannualtaxchargeofeither£30,000or£50,000fornominatedforeignincomeand/orgainsleftoutsidetheUK.ItischargeableinadditiontoanyUKtaxdueonanyforeignincomeand/orgainsremittedtotheUK.

Page RRN 22

Example 5Wayne is resident in the UK in 2013–14. His offshore income and capital gains are £200,000. Wayne has been resident in the UK for the preceding years as follows:

2004–05

2007–08

2008–09

2009–10

2010–11

2011–12, and

2012–13

Wayne lived in Spain during tax years 2005–06 and 2006–07.

He has therefore been resident for seven of the preceding nine years and so he must pay the RBC of £30,000 if he wants to use the remittance basis in 2013–14.

Youmaynothavetopaytheremittancebasischargeincertaincircumstances.Thiswilldependuponyourageandtheamountofyourforeignincomeand/orgains.Thenotesforboxes29and33providemoreinformationaboutthis.

High Income Child Benefit Charge

Ifyoupaytheremittancebasischarge(RBC)youmaybecomeliabletotheHighIncomeChildBenefitCharge(HICBC)evenifyouhavelittleornoUKincome.ThisisbecausetheforeignincomeyounominatetogeneratetheRBCwillusuallybemorethanthe£50,000incomethresholdthattriggerstheHICBC.Thiswillbethecaseevenifyounominateonlyasmallamountofforeignincome.

IfyournominationisofforeigncapitalgainsitispossibleyoumaynotbeliabletotheHICBCastheChildBenefitChargeisonlytriggeredbyincomeandnotgains.Asmallcapitalgainsnominationwouldnotachievethisastheremainderofthenominationwouldbedeemedtobefromunremittedforeignincome.

Paying the remittance basis charge (RBC)

IfyoupaytheRBCfromoutsidetheUKwithuntaxedincomeorgains,itwillnotbetreatedasaremittanceintheyearprovidedthepaymentismadedirecttousbycheque,orelectronictransfer.

Iftheclaimtotheremittancebasisislaterwithdrawnandthe£30,000orthe£50,000isrepaidtoyou,itwillberegardedasaremittancewhentherepaymentismadeandwillbesubjecttoUKtax.

Ifyoumakeapaymentonaccountinanticipationtoaclaimtoremittancebasisthatyoudonotsubsequentlymake,thenifmoneyequaltothisamountistakenoffshoreby15March2015itwillnotberegardedasataxableremittance.

AMore guidanceMore information on ‘Remitted income and gains’ can be found in both the glossary in section 1 and in section 5 covering the ‘Remittance basis’ in HMRC6. Go to hmrc.gov.uk/ cnr/hmrc6.pdf



Page RRN 23

Meaning of ‘remitted to the UK’

Incomeorgainsare‘remittedtotheUK’ifmoneyorpropertyisbroughtto,orreceivedin,orusedintheUKorifaserviceisprovidedintheUKandpaidforwithforeignincomeand/orgains.Theprecisemethodofremittancemakesnodifference.Anycommerciallyrecognisedformofmoney,suchascash,notes,cheques,promissorynotes,billsofexchangeorfinancialcredit,canconstituteataxableremittance.

Therulesregardingwhatconstitutesaremittancehavechangedconsiderablyfrom6April2008,andthedefinitionsofaremittancemayincluderemittancesmadetoorbyrelevantpersons,whichincludesyourspouseorcivilpartner,andminorchildrenorgrandchildren.IfyoubringinmoneyorotherpropertytotheUKorifyoubenefitfromoruseyourforeignincomeand/orgainsinrelationtoaserviceprovidedintheUK,theremaybeataxableremittance.

TherearealsorulesrelatingtodebtsconnectedtoUKproperty,andgiftstogiftrecipients.Themoneyorpropertydoesnothavetobephysicallyimportedfromoverseas.Itmay,forexample,bereceivedintheUKfromanotherUKresident,inreturnformoney,orassetsrepresentingincomeorgains,beingtransferredtothemabroad.

Election of foreign losses

TheelectionofforeignlosseswillneedtobeconsideredifyouarenotdomiciledintheUKandwanttooffsetanyoverseaslossesagainstyourforeignchargeablegains.Thismustbedoneaspartofyourclaimtotheremittancebasis,andshouldbemadeontheCapital gains summary pagesofthetaxreturn.Theelectioncanbemadeinthe‘Anyotherinformation’boxontheCapital gains summarypagesandshouldnotbemadeonthesepages.

Pleasenote,itwillnotbepossibletomakeanelectionafterthefirstyearinwhichtheremittancebasisisclaimedfrom2008–09onwards.

YoucanfindmoreinformationonthissubjectinguidancenoteHMRC6Residence, Domicile and the Remittance Basis, availableathmrc.gov.uk/cnr/hmrc6.pdf

Temporary non-residents and the remittance basis

Therulesontemporarynon-residentsmayapplytoanyremittancesin2013–14ofrelevantforeignincomethataroseinyearsuptoandincludingtheyearending5April2013,ifyouwereresidentintheUKandclaimedtheremittancebasisinthoseearlieryears.

Broadly,relevantforeignincomeisforeignincomeotherthanforeignemploymentincome.AnyremittancesmadeinyearsthroughoutwhichyouwerenotresidentintheUKmaybetaxablewhenyouresumeresidenceintheUK(inyour‘yearofreturn’)if:•youreturnedtotheUKduring2013–14followingaperiodofresidence

abroad(theyearofreturn)•youbecamenotresidentintheUKin2008–09,2009–10,2010–11,

2011–12or2012–13(the‘yearofdeparture’)•betweenthetaxyearwhenyouwerelastresident,thatis,theyearof

yourdepartureandtheyearofyourreturn,therewerefewerthanfivefulltaxyears,and

•youwereresidentorordinarilyresidentforatleastpartofeachoffouroutoftheseventaxyearsimmediatelypriortotheyearofdeparture.

A Information• Go to

hmrc.gov.uk/contactus• Phone the SA Helpline

on 0300 200 3310.• Phone the SA Orderline

on 0300 200 3610 for paper copies of the helpsheets and forms.

Page RRN 24

Therearecomparablerulesforchargeablegainsaccruingtotemporarynon-residents.YoucanfindmoreinformationinHelpsheet278Temporary non-residents and Capital Gains Tax, availableathmrc.gov.uk/helpsheet278

Iftemporarynon-residenceisclaimedthenadeclarationwillneedtobemadeontheForeignpages.Youshouldprovidemoredetailsinthe‘Anyotherinformation’box,box39.

Youcanfindmoredetailsonthetemporarynon-residentrulesinRDR1Guidance Note: Residence, Domicile and the Remittance Basis.

IfyouareindoubtaboutwhetherincomeorgainsfromabroadhavebeenreceivedintheUK,orthepreciseamountofthatincomeorthosegains,askusoryourtaxadviserforhelp.

More advice

Specialrulesapplytosomepeopleworkingabroad.Youcangetmorehelpfromourofficesasfollows.

Crown employees or pensioners (for example, civil servants, diplomats, members of the armed forces)SouthWalesArea,Cardiff(Compliance)ResidenceGroup15EastTyGlasLlanishenCARDIFFWALESCF145FPPhone:029 2032 5048(fromUK)00 44 161 931 9070 (fromoverseas)email:viaourwebsiteathmrc.gov.uk/cnr/email.htm

Merchant Navy seafarersSouthWalesArea,Cardiff(Compliance)MarineGroup15EastTyGlasLlanishenCARDIFFWALESCF145FPPhone:029 2032 5045(fromUK)00 44 161 931 9070(fromoverseas)email:viaourwebsiteathmrc.gov.uk/cnr/email.htm

Non-resident entertainers and sportspersonsHMRCPersonalTaxInternationalForeignEntertainersUnitStJohn’sHouseMertonRoadLIVERPOOLENGLANDL751BBPhone:03000 547395(fromUK)00 44 3000 547395(fromoverseas)

These notes are for guidance only and reflect the position at the time of writing. They do not affect the right of appeal.

non-residence etc. notes - andica · residence, remittance basis etc. notes ... notes in booklet...

Documents