This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

How to claim remittance basis

vladlondon
Posts:1
Joined:Mon Jan 23, 2017 1:22 am
How to claim remittance basis

Postby vladlondon » Mon Jan 23, 2017 1:28 am

Hi, I'm taking care of my partner's taxes and am going to submit her self-assessment tax return for 2015-16.

She is working both in the UK and abroad, and would like to claim remittance basis so that her overseas income (which stays overseas) isn't taxed twice (it's not eligible under a double taxation treaty).

If I file self-assessment return via HMRC website online it doesn't let me claim remittance basis and suggests turning to commercial software for that. Is there any cost-effective and easy solution there that you could recommend?

Thanks!

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: How to claim remittance basis

Postby maths » Thu Jan 26, 2017 7:43 pm

Someone with knowledge of commercial software may be able to help; failing which a paper return could be filed.

I assume partner is UK resident and non-UK domiciled?

Even if there is no double tax treaty a UK resident is able to offset foreign taxes against a UK tax liability thus avoiding to a great extent double taxation.

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: How to claim remittance basis

Postby AmanSood » Sun Jan 29, 2017 9:09 pm

It's too late to file a paper return as deadline was 31 Oct and unfortunately you can't elect to be taxed on a remittance basis using HMRC's standard software. you will need commercial software and HMRC's website (https://www.gov.uk/government/publicati ... -suppliers) provides a list of different suppliers you could use. Also note, if you claim to use the remittance basis, you would lose any entitlement to a UK personal allowance £10,600 for 2015/16 so it's worth making sure this is the best approach.

Aman
Tax advisor
www.e-taxconsulting.com
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


Return to “Income Tax”