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Where Taxpayers and Advisers Meet

Remittance basis and Residency

Yiannis17
Posts:105
Joined:Wed Aug 06, 2008 3:43 pm
Remittance basis and Residency

Postby Yiannis17 » Mon Jan 10, 2022 3:15 pm

Afternoon

I have a situation where an individual who has been UK resident since 2017 has a very large equities portfolio managed by a broker in Europe. Their tax returns have always been based on the remittance basis. Non UK Dom and UK resident.

In the tax year 2020/21 there have been some large disposals resulting in a very large capital gain coupled with large amounts of dividends and interest received by the portfolio for the year. The Broker has provided their yearly schedule and completed the tax return sections on these schedules to show the gains and interest received. There is also the note highlighted about 'please seek professional advise on the taxation of these figures'.
The client has stipulated that the income is not remitted into the UK and kept overseas. As such they have asked for their 2021 tax return to not include these figures. I believe that to be the case but wanted confirmation please.

bd6759
Posts:3745
Joined:Sat Feb 01, 2014 3:26 pm

Re: Remittance basis and Residency

Postby bd6759 » Mon Jan 10, 2022 7:52 pm

Confirmation of what?

maths
Posts:8430
Joined:Wed Aug 06, 2008 3:25 pm

Re: Remittance basis and Residency

Postby maths » Tue Jan 11, 2022 12:59 am

As a non-UK domiciled but UK resident individual claiming remittance basis treatment, any non-UK source income /gains derived from overseas situs assets and not remitted to the UK are not subject to UK income tax/CGT and no disclosure is required on any Tax Return.

Yiannis17
Posts:105
Joined:Wed Aug 06, 2008 3:43 pm

Re: Remittance basis and Residency

Postby Yiannis17 » Tue Jan 11, 2022 1:30 pm

Thank you Maths. The potential tax liability would have been 6 figures so pleased to get confirmation.


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