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Where Taxpayers and Advisers Meet

Remittance Basis transfer of tax due

Joined:Tue May 10, 2022 5:27 pm
Remittance Basis transfer of tax due

Postby tsdjim » Tue May 10, 2022 5:38 pm


I am planning on claiming the UK Remittance basic for taxation. The question I have is that when tax is due, which is the best way pay HMRC:

1. Directly to HMRC from a foreign bank account
2. Transfer the amount to my UK bank account and then to HMRC

Is any of this tax transferred to HMRC considered to be a Remittance and does transfer from a 'clean account abroad' to pay HMRC, matter here.



Joined:Sat Feb 01, 2014 3:26 pm

Re: Remittance Basis transfer of tax due

Postby bd6759 » Tue May 10, 2022 10:27 pm

Any transfer of money could be a remittance. What you use it for is irrelevant.

Joined:Wed Aug 06, 2008 3:25 pm

Re: Remittance Basis transfer of tax due

Postby maths » Wed May 11, 2022 4:47 pm

If you have to pay the so-called Remittance Basis Charge (RBC) in order to claim remittance treatment then this RBC can be remitted from overseas income/gains without creating a UK tax charge if it is directly to HMRC by cheque or electronic transfer (but not via a UK bank account or cheque drawn on a UK bank).

However, if what is remitted is foreign income/gains which are used to discharge a UK income tax/CGT liability on a remittance of foreign income/gains then the remittance to discharge the tax liabilities is taxable however remitted (unless such remittance is of "capital").

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