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Where Taxpayers and Advisers Meet

Election for overseas losses

Brightonian
Posts:137
Joined:Wed Aug 06, 2008 3:31 pm
Election for overseas losses

Postby Brightonian » Wed Aug 14, 2013 4:45 pm

I am a little concerned in case I have missed the deadline for a S16ZA claim for a client. He 'claimed' the remittance basis for 2008/09 and therefore the deadline has passed. However, I have been looking at the HMRC manuals and am now not certain. He received a tax return for that year and claimed remittance basis even though his unremitted foreign income was less than £2000. Looking at RDRM32105 it appears that he is covered by the S809D exemption. However, looking at the HMRC instruction, it says that ' if they are sent a tax return . . . they should include details of their use of the remittance basis in the return when they file it, even if the remittance basis is accessed by virtue of S809D or S809E'. Has my client simply included details of his use of the remittance basis on the return or has he, by virtue of ticking box 27 on he non-residence pages, formally claimed it? I should be grateful; for forum members' views on this matter.

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

Re: Election for overseas losses

Postby maths » Wed Aug 14, 2013 8:08 pm

1. On the face of it by ticking box 27 client has claimed remittance basis treatment under s809B for 08/09.

2. If he had also ticked box 28 (re £2,000 limit) then he would not have claimed under s809B but would fall under 809D.

So under 1 above a 16ZA claim would need to be lodged re 08/09; but isn't the time limit to do this 5 years?

Under 2 no 16ZA claim would be necessary.

Brightonian
Posts:137
Joined:Wed Aug 06, 2008 3:31 pm

Re: Election for overseas losses

Postby Brightonian » Wed Aug 14, 2013 9:53 pm

Thank you very much. My understanding was that the deadline for claiming was April 2013 but I'll check that in case I got it wrong. He did indeed tick Box 28 (and also 29) as these were appropriate. So it seems that no election is required after all. Thank you very much for taking the time to explain the matter so clearly.


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