What is the remittance basis charge?
Answered 17 March 2026
Here is a comprehensive explanation of the Remittance Basis Charge (RBC):
⚠️ Important note: From 6 April 2025, it is no longer possible to use the remittance basis of taxation. The RBC therefore only applied up to and including the 2024-25 tax year.
What the law says
The RBC is provided for in ITA 2007, s.809H. It applies where:
- s.809B (the claim for remittance basis) applies to an individual for a tax year;
- the individual is aged 18 or over in that year; and
- the individual meets the 12-year residence test or the 7-year residence test for that year.
Residence tests (per ITA 2007, s.809C):
- The 7-year residence test: the individual has been UK resident in at least 7 of the 9 tax years immediately preceding the relevant year.
- The 12-year residence test: the individual has been UK resident in at least 12 of the 14 tax years immediately preceding the relevant year.
How the charge works: When the RBC applies, income tax is charged on nominated income and capital gains tax on nominated chargeable gains, as if the remittance basis claim had not been made (i.e., as if the arising basis applied to those nominated amounts). If the resulting "relevant tax increase" would otherwise be less than the applicable amount, additional income is deemed to be nominated to bring the charge up to the applicable amount.
The applicable amounts (per ITA 2007, s.809H(5B)):
- £30,000 if the individual meets the 7-year residence test;
- £60,000 if the individual meets the 12-year residence test;
- £90,000 if the individual met the 17-year residence test (resident in at least 17 of the preceding 20 tax years) — this applied for 2015-16 and 2016-17 only, and was removed from 6 April 2017 due to the introduction of deemed domicile rules.
HMRC guidance / practice
Nature of the charge: The RBC is an additional tax charge — it is paid on top of any UK tax liability for the year on foreign income and gains actually remitted to the UK. It consists of income tax, capital gains tax, or a combination of the two.
Who pays it: The RBC is payable by "long-term UK residents" who are aged 18 or over at the end of the tax year and who claim the remittance basis in respect of foreign income and/or gains arising in the relevant year.
Historical charge levels:
- 2008-09 to 2011-12: a single charge of £30,000 (7-year test only).
- From 2012-13: a second tier of £50,000 (12-year test), rising to £60,000 from 2015-16.
- From 2015-16 to 2016-17: a third tier of £90,000 (17-year test), abolished from 6 April 2017.
Consequences of claiming the remittance basis (including the RBC): Individuals who claimed the remittance basis also lost their entitlement to the UK personal allowance (for income tax) and the annual exempt amount (for CGT).
Collection: The RBC is payable through the Self Assessment (SA) regime. An SA tax return must be filed, including the SA109 "Residence, remittance basis etc" supplementary return.
Double taxation relief: Individuals subject to the RBC may be able to claim relief for the income tax and CGT elements under the terms of relevant Double Taxation Agreements.
Exempt remittance: Where an individual pays the RBC directly to HMRC from a foreign bank account, that payment may be treated as an exempt remittance under ITA 2007, s.809V.
Citation sources
, an amount of income had been nominated so as to make the relevant tax increase equal to the applicable amount , and b the individual's income for that year were such that such a nomination could have been made (if that is not the case). 5 “ The relevant tax increase ” is— a the total amount of income tax and capital gains tax payable by the individual for the relevant tax year, minus b the total amount of income tax and capital gains tax that would be payable by the individual for the relevant
Part 14 Income tax liability: miscellaneous rules Chapter A1 Remittance basis Application of remittance basis Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply 809C 1 This section applies to an individual for a tax year if ...— za the tax year is the tax year 2024-25 or an earlier tax year, a the individual is aged 18 or over in that year, and b the individual meets ... the 12-year residence test or the 7-year residen
With a few important exceptions (refer to RDRM32100 Exceptions to the claims requirements) individuals who used the remittance basis from 6 April 2008 to 5 April 2025: lost their entitlement to UK personal tax allowances (PAs) RDRM32040 for income tax purposes lost their Annual Exempt Amount (AEA) RDRM32040 for capital gains tax purposes. had to make a claim to use the remittance basis Note: It is no longer possible to use the remittance basis of taxation from 6 April 2025. In addition some remi
From 6 April 2025 it is not possible to use the remittance basis of taxation, however, any foreign income or gains that have arisen to a former remittance basis user prior to this date will continue to be taxed at the usual tax rates if they are remitted to the UK on or after 6 April 2025, subject to any amounts designated under the temporary repatriation facility (TRF) – see RDRM71000. The guidance in this section only applies to tax years up to and including the 2024-25 tax year and remains f
Where the individual pays either the remittance basis charge directly to HMRC from their foreign bank account, the payment of the charge may be regarded as an exempt remittance (ITA07/s809V). This exemption applies to any part of the payment on account that is attributable to the charge for the tax year. Refer to RDRM34020 ‘Remittance basis charge - money paid directly to HMRC’ for details.
From 6 April 2025 it is not possible to use the remittance basis of taxation, however, any foreign income or gains that have arisen to a former remittance basis user prior to this date will continue to be taxed at the usual tax rates if they are remitted to the UK on or after 6 April 2025, subject to any amounts designated under the temporary repatriation facility (TRF) – see RDRM71000. The guidance in this section only applies to tax years up to and including the 2024-25 tax year and remains f
tax years. The third tier of RBC, (those resident for 17 of the preceding 20 tax years), will as a consequence of the deemed domicile changes, no longer be applicable from 6 April 2017. This is because all those who fall within this tier will now be deemed domiciled in the UK. From 6 April 2017 there are only two tiers of charge - £30,000 or £60,000. Example Blanche, a non-UK domiciled individual, has been resident in the UK since the 1999-2000 tax year, and has always claimed the remittance bas
Part 14 Income tax liability: miscellaneous rules Chapter A1 Remittance basis Effect of section 809B, 809D or 809E applying Claim for remittance basis by long-term UK resident: charge 809H 1 This section applies if— a section 809B (claim for remittance basis to apply) applies to an individual for a tax year (“the relevant tax year”), b the individual is aged 18 or over in the relevant tax year, and c the individual meets ... the 12-year residence test or the 7-year residence test for the relevan
PART 1 Income tax, corporation tax and capital gains tax CHAPTER 2 Income tax: general Increased remittance basis charge 24 1 Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows. 2 In section 809C (claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply)— a in subsection (1)(b), after “meets” insert “ the 17-year residence test, ” ; b after subsection (1) insert— 1ZA An individual meets the 17-year re
From 6 April 2025 it is not possible to use the remittance basis of taxation, however, any foreign income or gains that have arisen to a former remittance basis user prior to this date will continue to be taxed at the usual tax rates if they are remitted to the UK on or after 6 April 2025, subject to any amounts designated under the temporary repatriation facility (TRF) – see RDRM71000. The guidance in this section only applies to tax years up to and including the 2024-25 tax year and remains f