Post on 02-Jan-2017
Residence, remittance basis etc. notes Tax year 6 April 2013 to 5 April 2014
SA109 Notes 2014 Page RRN 1 HMRC 12/13
ContentsResidence status RRN 2
Boxes1to9 RRN2
Boxes10to14 RRN7
Personal allowances RRN 8
Boxes15to16 RRN8
Dual residents claiming the remittance basis RRN 9
Residence in other countries and Double Taxation Relief RRN 10
Boxes18to22 RRN10
Domicile RRN 11
Temporarynon-residenceandcapitalgains RRN11
Boxes23to27 RRN12
Remittance basis RRN 12
Boxes28to39 RRN13
More information RRN 17
Consideringyourresidencestatus RRN17
ResidenceinothercountriesandDoubleTaxationRelief RRN17
Domicile RRN19
Remittancebasis RRN20
Moreadvice RRN24
TheResidence, remittance basis etc.pagesaremainlyforpeoplewho:•arenotresidentintheUK•areeligibletooverseasworkdayrelief•arrivedintheUKduringthistaxyearandbecameresident•areduesplityeartreatment•haveadomicileoutsidetheUK•haveforeignincomeand/orcapitalgainsandwanttousetheremittance
basisfor2013–14.
Thesenotesarearrangedintwoparts.PagesRRN2toRRN17giveadviceonhowtocompletetheboxesontheResidence, remittance basis etc.pages.MoreinformationabouttherelevantsubjectisgivenonpagesRRN17toRRN22.
YoucanfindmoredetailedinformationaboutthetopicscoveredinthesenotesinbookletRDR1Guidance Note: Residence, Domicile and the Remittance Basis,whichisavailableathmrc.gov.uk/cnr/rdr1.pdf
Wherewerefertoyourresidencestatusforyearspriorto2013–14,thismustbedeterminedunderthepreviousrules.YoucanfindmoreinformationontheseinHMRC6Residence, Domicile and the Remittance Basis,availableathmrc.gov.uk/cnr/hmrc6.pdf
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 2
Residence statusBox 1 If you were not resident in the UK for 2013–14
From6April2013residenceisdefinedinUKlaw.Todetermineyourresidencestatusfortaxyear2013–14youshouldinitiallyconsiderthefirstautomaticUKtest,ifyousatisfythisyouneedlooknofurther.Ifyoudonotmeetthistestyouneedtoconsiderthethreeautomaticoverseastests,ifyousatisfyanyoneoftheseteststhenyouarenotresidentintheUKforthetaxyear.IfyoudonotmeetanyofthesetestsyouwillneedtolookatthesecondandthirdautomaticUKtests,ifyousatisfyoneoftheseteststhenyouareresidentintheUKforthetaxyear.Ifnoneoftheseautomatictestsapplyyouwillneedtolookatthesufficienttiestesttoestablishyourresidencestatus.
Anonlinetool,theTaxResidenceIndicator,isavailabletohelpyoudecidewhetherornotyouareUKresident.Youcanfindthisathmrc.gov.uk/international/residence.htm
Automatic overseas tests
1YouwereresidentintheUKinoneormoreofthetaxyears2010–11,2011–12and2012–13andyouspentfewerthan16daysintheUKin2013–14.
2YouwerenotresidentintheUKinanyofthetaxyears2010–11,2011–12or2012–13andyouspentfewerthan46daysintheUKin2013–14.
3Youworkedfulltimeoverseasoverthetaxyear2013–14,withoutanysignificantbreaksfromoverseaswork,and:
•spentfewerthan91daysintheUKinthetaxyear •workedintheUKformorethanthreehoursadayonfewerthan
31daysinthetaxyear.
Youcannotmakeaclaimtonon-residenceonthebasisofthethirdtestifyouhavearelevantjobonboardavehicle,shiporaircraftandyoumakeatleast6crossbordertripsintheyearthatbeginand/orendintheUK.Refertoparagraph3.25ofRDR3formoreinformationifyouhavearelevantjob.Formoredetailsofwhatcountsasfulltimeworkoverseas,pleaserefertothenotesforbox8andparagraph1.8ofRDR3Guidance Note: Statutory Residence Test (SRT), availableathmrc.gov.uk/international/rdr3.pdf
Automatic UK tests
1Youspent183daysormoreintheUKintaxyear2013–14.
2YouhadahomeintheUKduringallorpartoftaxyear2013–14andmetcertainconditionsinrelationtothathome.Formoredetailsofthistest,pleaserefertoparagraph1.24ofRDR3,availableathmrc.gov.uk/international/rdr3.pdf
3YouworkedfulltimeintheUKforanyperiodof365daysallorpartofwhichfallsintaxyear2013–14;youhavenosignificantbreaksfromUKwork;andyoumeetcertainconditionsinrelationtothetotalnumberofdaysthatyouworkintheUKin2013–14.Fordetailsofthistest,pleaserefertoparagraph1.36ofRDR3,availableathmrc.gov.uk/international/rdr3.pdf
Sufficient ties test
Ifyoudonotmeetanyoftheautomaticteststhenyoumustconsiderthesufficienttiestesttodetermineyourresidencestatus.Thistestisaslidingscale;themoredaysyouspentintheUK,thefewerthetiesyouneedtobeUKresident.ThenumberoftiesneededisshowninthetableonpageRRN3.
AMore guidanceMore information to help you understand your residence status is available at hmrc.gov.uk/ international/rdr3.pdf
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 3
Days spent in the Resident in any Not resident in UK 2013–14 of previous three previous three tax years tax years16 to 45 At least four ties
46 to 90 At least three ties All four ties
91 to 120 At least two ties At least three ties
121 + At least one tie At least two ties
FormoredetailsofwhatcountsasatietotheUK,pleaserefertothenotesforbox12.
Ifyouarecompletingthisreturnonbehalfofsomeonewhodiedduringtaxyear2013–14,youwillneedtorefertosection4oftheRDR3forhelptodeterminetheirresidencestatus.
Box 2 If you are eligible for overseas workday relief for 2013–14
IfyouwereresidentbutnotordinarilyresidentintheUKat5April2013andeligibleforoverseasworkdayrelief(OWR)atthatdateundertherulesthatwereinplacepriortotheintroductionoftheStatutoryResidenceTest(readHMRC6,chapter7),youmaybeentitledtoOWRfor2013–14ifyouwouldhavebeenentitledtothereliefunderthe‘oldrules’.Readparagraph18ofRDR4Guidance Note: Overseas Workday Relief (OWR),availableat hmrc.gov.uk/international/rdr4.pdf
IfyoureligibilitytoOWRstartsonorafter6April2013,thentobeeligibleforityoumust:•notbedomiciledintheUKthroughouttaxyear2013–14•claimtobetaxedontheremittancebasis•nothavebeenresidentintheUKforthreeconsecutivetaxyears
and2013–14isoneofthefollowingthreeconsecutivetaxyears.
Ifyouareeligible,youcanclaimOWRforthreetaxyearsincludingtheyearyoubecameresidentintheUK.
PleasenotetherulesforOWRonlyapplyfornewclaimsfrom2013–14.Ifyouwereclaimingtoberesidentbutnotordinarilyresidentat5April2013,thentransitionalruleswillapply.Fordetailspleaserefertoparagraph17ofRDR4Guidance Note: Overseas Workday Relief (OWR),availableat hmrc.gov.uk/international/rdr4.pdf
Box 3 If your circumstances meet the criteria for split year treatment for 2013–14
Underthestatutoryresidencetest,youareeitherUKresidentornon-residentforafulltaxyear,howeverifyouareresidentfor2013–14youneedtoconsiderwhethersplityeartreatmentappliestoyou.Thereareeightdifferentcasesinwhichthetaxyearcanbesplitintotwoparts;aUKpartforwhichyouarechargedtoUKtaxasaresidentandanoverseaspartforwhich,formostpurposes,youarechargedtoUKtaxasanon-resident.Thecriteriaforeachofthosecasesareoutlinedbelow;youmustmeetalltheconditionsofeachcase.Ifyoumakeanentryinbox3youmustincludedetailsofwhichsplityearcasesapplytoyouinthe‘Anyotherinformation’box,box39.IfyouhavecometotheUKtoliveorworkyoushouldalsoenterinbox39thedateonwhichyouconsidertheUKpartofthesplityeartostart.Or,ifyouhavelefttheUKtoliveorworkabroadyoushouldgivethedateonwhichyouconsidertheUKpartofthesplityeartohaveended.
AMore guidanceGo to hmrc.gov.uk/helpsheet278 to find more information about temporary non-residents and Capital Gains Tax.
Page RRN 4
Case 1 Starting full-time work overseas
Youmust:•beUKresidentintaxyears2012–13and2013–14•benon-residentfortaxyear2014–15becauseyoumeetthethird
automaticoverseastest•satisfytheoverseasworkcriteriafortheoverseaspartof2013–14.
Case 2 The partner of someone starting full-time work overseas
Youmust:•beUKresidentintaxyears2012–13and2013–14•benon-residentfortaxyear2014–15•haveapartnerwhosecircumstancesfalleitherwithinCase1for
taxyear2013–14orwhoconcessionallyreceivedsplityeartreatmentfor2012–13becausetheystartedworkingfull-timeoverseas,readHMRC6,availableathmrc.gov.uk/cnr/hmrc6.pdf
•havebeenlivingtogetherintheUKatsomepointinthetaxyear2012–13or2013–14
•moveoverseassoyoucanlivetogetherwhileyourpartnerisworkingoverseas
•intheperiodbeginningonyourdeemeddeparturedayandendingonthelastdayoftaxyear2013–14either:
—havenohomeintheUKor,ifyouhavehomesinboththeUKandoverseas,spendthegreaterpartofthetimelivingintheoverseashome
—spendnomorethanthepermittedlimitofdaysintheUK.
Case 3 Ceasing to have a home in the UK
Youmust:•beUKresidentintaxyears2012–13and2013–14•benon-residentfortaxyear2014–15•haveoneormorehomesintheUKatthestartoftaxyear2013–14
andatsomepointintheyearceasetohaveanyhomeintheUKfortherestofthetaxyear.
FromthepointyouceasetohaveahomeintheUKyoumust:•spendfewerthan16daysintheUK•inrelationtoaparticularcountry,either: —becomeresidentfortaxpurposesinthatcountrywithinsixmonths —bepresentinthatcountryattheendofeachdayforsixmonths,or —haveyouronlyhome,orallyourhomesifyouhavemorethanone,
inthatcountrywithinsixmonths.
Case 4 Starting to have a home in the UK only Youmust:•beUKresidentintaxyear2013–14•benon-residentfortaxyear2012–13•notmeettheonlyhometestatthestartoftaxyear2013–14butatsome
pointinthetaxyearmeettheonlyhometestandcontinuetodosountiltheendofthetaxyear
•notmeetthesufficientUKtiestestforthepartoftaxyear2013–14beforethedayonwhichyoumeettheonlyhometest.
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 5
Case 5 Starting full-time work in the UK
Youmust:•beUKresidentintaxyear2013–14•benon-residentfortaxyear2012–13•notmeetthesufficientUKtiestestforthepartoftaxyear2013–14
beforethepointyoufirstmeetthethirdautomaticUKtest.
Case 6 Ceasing full-time work overseas
Youmust:•beUKresidentintaxyears2013–14and2014–15•benon-residentfortaxyear2012–13becauseyouworkedfull-time
overseasforthewholeofthetaxyearundertherulesinforcepriortothestatutoryresidencetest,readHMRC6athmrc.gov.uk/cnr/hmrc6.pdf
•havebeenUKresidentforoneormoreofthetaxyears2008–09,2009–10,2010–11or2011–12
•satisfytheoverseasworkcriteriafortheoverseaspartof2013–14.
Case 7 The partner of someone ceasing full-time work overseas
Youmust:•beUKresidentintaxyears2013–14and2014–15•benon-residentfortaxyear2012–13•haveapartnerwhosecircumstancesfalleitherwithinthecriteriafor
Case6splityeartreatmentintaxyear2013–14orwhoconcessionallyreceivedsplityeartreatmentfortaxyear2012–13becausetheyceasedworkingfull-timeoverseas,readHMRC6athmrc.gov.uk/cnr/hmrc6.pdf
•movetotheUKonadayintaxyear2013–14soyoucancontinuetolivetogetherwithyourpartnerontheirreturnorrelocationtotheUK
•inthepartofthetaxyear2013–14,beforeyourdeemedarrivalday,either: —havehadnohomeintheUKatanytime,or —hadhomesbothintheUKandoverseas,andyouspentthegreaterpart
ofthetimelivinginyouroverseashome•notexceedthepermittedlimitofdaysspentintheUKintheoverseaspart
ofthetaxyear2013–14beforetheUKpartoftheyearcommenced.
Case 8 Starting to have a home in the UK
Youmust:•beUKresidentintaxyears2013–14and2014–15•benon-residentfortaxyear2012–13•havenoUKhomeatthebeginningoftaxyear2013–14butstarttohave
aUKhomeatsomepointduringthetaxyearandcontinuetohaveaUKhomefortherestofthetaxyearandforalloftaxyear2014–15
•nothavesufficientUKtiestomakeyouUKresidentintheperiodfromthe6April2013tothepointyoustarttohaveaUKhome.
Inanumberoftheabovecasesyouareaskedtoconsiderifyoumeetthesufficienttiestest.Youmayberequiredtouseanapportionedtiestable.Formoreinformationonthisandthedetailsofsplityeartreatmentrefertosection5ofRDR3,availableathmrc.gov.uk/international/rdr3.pdf
Ifyouhaveputan‘X’inbox3youshouldmakesurethatyouhavenotputan‘X’inbox1.Pleasecompletebox6orbox7asappropriate.
Page RRN 6
Box 4 If you were resident in the UK for 2012–13
Thestatutoryresidencetestonlycameintoeffectfrom6April2013.Yourresidencestatusforearlieryearscannotbedeterminedbythistest,andwilldependonallthefactsofyourparticularcircumstances.
Putan‘X’inbox4ifyouwereresidentintheUKforthetaxyear2012–13,and•youarenotresidentforthetaxyear2013–14,or•youareresidentforthetaxyear2013–14andanycaseofsplityear
treatmentappliestoyou.
Box 5 If you have made an entry in box 2 and any of your foreign earnings are for an earlier year
Ifallorpartoftheoverseasworkdayreliefamountincludedinbox12onpageAi2oftheAdditional informationpageisformoneyreceivedintaxyear2013–14butearnedinanearliertaxyear,pleaseputan‘X’inbox5.
Boxes 6 and 7 Dates of arrival and departure
IfyouhavecometoliveorworkintheUKpleaseenterthedateyouenteredtheUKinbox6.
IfyouwereresidentintheUKforthetaxyear2013–14becauseyoumetthefirstautomaticUKtestbyspending183ormoredayshere,pleaseenterthefirstandlastdatesonwhichyouwerepresentintheUKduringthetaxyear.
IfyouhavecompletedanextendedperiodofworkintheUKoryouhaveceasedtolivehereforotherreasons,pleaseenterthedateyouleftinbox7.
Box 8 If you were resident in the UK in any of the previous three tax years
Ifyouwereresidentinanyoftaxyears2010–11,2011–12or2012–13,putan‘X’inbox8.
Itisnecessarywhenconsideringtheautomaticoverseastestsandthesufficienttiesteststoknowifyouwereresidentinanyofthepreviousthreetaxyears.Thestatutoryresidencetestonlycameintoeffectfrom6April2013andasaresultyourresidencestatusforearlieryearswillnormallybedeterminedbythefactsofyourparticularcircumstances.Howeveryoucanmakeanelectiontodetermineyourresidencestatusforearlieryearsbyreferencetothestatutoryresidencetest.Thiswillnotaffectyouractualresidencestatusorliabilityforearlieryears;itsimplyallowsyoutousethestatutoryresidencetesttodetermineifyouwereresidentinthethreepreviousyearsforthepurposeofestablishingyourcurrentresidencestatus.Ifyouwishtomakeanelectionyoushouldincludedetailsinthe‘Anyotherinformation’box,box39.Onceanelectionhasbeenmadeitisirrevocable.
Box 9 If you had a home overseas in 2013–14
Pleaseputan‘X’inbox9ifyouhaveahomeoverseasatanypointduringthe2013–14taxyear.PleasereadAnnexAofRDR3formoreinformationaboutwhatconstitutesahome.
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 7
Box 10 Number of days spent in the UK during 2013–14
Youshouldincludeinbox10allthedaysduring2013–14onwhichyouwereintheUKattheendoftheday(atmidnight).YoumustincludeinthetotalanydayswhenyouwereintheUKattheendofthedayduetoexceptionalcircumstances(seebox11).Youmayexcludetransitdaysfromthisfigure.AtransitdayisadaywhenyouarriveintheUKasapassengerandleavethenextday.BetweenyourarrivalanddepartureyoudonotengageinanyactivitiesunrelatedtoyourpassagethroughtheUK.
Deemed days
IfyouhavebeenresidentintheUKforoneormoreofthetaxyears2010–11,2011–12or2012–13,haveatleastthreeUKtiesandyouarepresentintheUKfor30dayswithoutbeingpresentatmidnight,thedeemingruleapplies.Thismeansthatanydayoverthefirst30thatyouarepresentintheUKatanypointbutarenothereatmidnightwillbedeemedasaUKdayandmustbeincludedinyourentryinbox10.Formoredetailsondeemeddaysreadparagraph3.3oftheRDR3,availableathmrc.gov.uk/international/rdr3.pdf
Box 11 Number of days in box 10 attributed to exceptional circumstances
Youshouldshowinbox11thenumberofdaysspentintheUKbecauseofexceptionalcircumstancesbeyondyourcontrol,forexample,anillnessthatoccurredwhileyouwereintheUKwhichpreventedyoufromtravelling.Otherexamplesofexceptionalcircumstanceswouldbenationalandlocaldisasters,suchascivilunrest,naturaldisastersandtheoutbreakofwar.
Themaximumnumberofdaysthatcanbeattributedtoexceptionalcircumstancesis60inanytaxyear.ReadAnnexBoftheRDR3formoreinformationonexceptionalcircumstancesathmrc.gov.uk/international/rdr3.pdf
Box 12 How many ties to the UK did you have in 2013–14?
Pleaseenterinbox12thenumberofUKtiesyouhadin2013–14.Youshouldlistwhichtiesapplytoyouinthewhitespacenotes.Thetiesthatyouneedtoconsiderareasfollows.
Family tie
Youhaveafamilytieifyour:•husband,wifeorcivilpartner(unlessyouareseparated)•partner,whoyoulivewithashusbandandwifeorascivilpartners•childundertheageof18;specialrulesapplytochildren,pleaseread
RDR3section2athmrc.gov.uk/international/rdr3.pdfisresidentintheUKfor2013–14.
Accommodation tie
Youhaveanaccommodationtiefortaxyear2013–14ifyouhaveaplacetoliveintheUKavailabletoyouforacontinuousperiodof91daysandyouspendatleastonenighttherein2013–14.Iftheavailableaccommodationisthehomeofacloserelativeyoumustspendatleast16nightsthereforanaccommodationtietoexist.
Work tie
Youhaveaworktieifyoudoatleast40daysworkintheUKinthetaxyear2013–14.Tocountasaworkdayyoumustworkformorethanthreehours.
Page RRN 8
90 day tie
Youhavea90daytieifineitherofthetaxyears2011–12or2012–13youwereintheUKformorethan90days(thatis,atmidnight).
Country tie
YouhaveacountrytieiftheUKisthecountryyouarepresentinforthegreatestnumberofmidnightsinthetaxyear2013–14.Thistieonlyneedstobeconsideredifyouwereresidentinoneormoreofthetaxyears2010–11,2011–12and2012–13.
Box 13 Number of workdays you spent in the UK
Pleaseenterinbox13thetotalnumberofdaysonwhichyouworkedformorethanthreehoursintheUKintaxyear2013–14.
Box 14 Number of workdays you spent overseas
Pleaseenterinbox14thetotalnumberofdaysonwhichyouworkedformorethanthreehoursoverseasintaxyear2013–14.
Personal allowances
Claims for UK personal allowances for non-residents and dual residents
Helpsheet304Non-residents – relief under Double Taxation Agreementsgivesyouinformationthatwillbeusefultoyouindecidingifyouareentitledtopersonalallowances.
Boxes 15 and 16 are not mutually exclusive. You may, if appropriate, complete both boxes.
Box 15 If you are entitled to claim personal allowances as a non-resident because of the terms of a Double Taxation Agreement
Pleaseputan‘X’inbox15ifyousatisfyoneoftheconditionslistedinthethreebulletpointsstartingbelowandyouareclaimingpersonalallowancesasanon-residentunderthetermsofaDoubleTaxationAgreement.
Youalsowillneedtogetacertificatefromtheoverseastaxauthoritystatingthatyouareresidenttherefortaxpurposesfortheperiodoftheclaimand,whereappropriate,havedocuments(forexample,apassport)toshowthatyouareanationalofthatcountry.Pleasekeepthecertificateanddocumentsincasetheyareneededlatertosupportyourclaim.
Theconditionsarethat:•youareanationalofBulgaria,IsraelandJamaica,or•youareanational and a residentofArgentina,Australia,Azerbaijan,
Bangladesh,Belarus,Bolivia,Bosnia-Herzegovina,Botswana,Canada,China,Croatia,Cyprus,CzechRepublic,Denmark,Egypt,Estonia,Finland,France,Gambia,Iceland,India,Indonesia,Italy,IvoryCoast(Coted’Ivoire),Japan,Jordan,Kazakhstan,Korea(Republicof),Latvia,Lesotho,Lithuania,Malaysia,Malta,Montenegro,Morocco,NewZealand,Nigeria,Norway,Oman,Pakistan,PapuaNewGuinea,Philippines,Romania,RussianFederation,Serbia,SlovakRepublic(Slovakia),Slovenia,SouthAfrica,Spain,SriLanka,Sudan,Switzerland,Taiwan,Tajikistan,Thailand,TrinidadandTobago,Tunisia,Turkey,Turkmenistan,Uganda,Ukraine,Uzbekistan,Venezuela,VietnamorZimbabwe,or
AMore guidanceFor more general information on Double Taxation Agreements and entitlement to UK personal allowances, go to hmrc.gov.uk/taxtreaties/dtdigest.pdf
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 9
•youarearesidentofAustria,Barbados,Belgium,Burma,Fiji,Greece,Ireland,Kenya,Luxembourg,Mauritius,Namibia,Netherlands,Portugal,Swaziland,Sweden,SwitzerlandorZambia.
Exceptions:
Youshouldnotputan‘X’inbox15,ifyouarearesidentofKenya,MauritiusorZambiaoraresidentbutnotacitizen,ofAustria,Belgium,Luxembourg,Portugal,SwedenorSwitzerlandandyourincomeconsistssolelyofdividends,interestandroyaltiesoranycombinationofthem.Iftheseconditionsapplythenyouarenotentitledtopersonalallowances.
Box 16 If you are entitled to claim personal allowances as a non-resident on some other basis, or as a dual resident remittance basis user under the terms of certain Double Taxation Agreements (DTAs)
Pleaseputan‘X’inbox16ifyouarenotresidentintheUKand,underoneormoreoftheconditionslistedbelow,areentitledunderUKlawtothesamepersonalallowancesandreliefsthatwouldbeavailabletoyouifyouwereresidentintheUK.
Thesevenconditionsare:•youareaBritishcitizenoranationalofanothermemberstateofthe
EuropeanEconomicArea(EEA).TheEEAmemberstatesare:Austria,Belgium,Bulgaria,Cyprus,CzechRepublic,Denmark,Estonia,Finland,France,Germany,Greece,Hungary,Iceland,Ireland,Italy,Latvia,Liechtenstein,Lithuania,Luxembourg,Malta,Netherlands,Norway,Poland,Portugal,Romania,SlovakRepublic(Slovakia),Slovenia,Spain,SwedenandUnitedKingdom
•youareresidentintheIsleofManortheChannelIslands•youhavepreviouslyresidedintheUKandareresidentabroadforthesake
ofyourhealth,orthehealthofamemberofyourfamilylivingwithyou•youare,orhavebeen,employedintheserviceoftheBritishCrown•youareemployedintheserviceofanyStateundertheprotection
ofHerMajesty•youareemployedintheserviceofanymissionarysociety•youareawidow,widowerorsurvivingcivilpartnerwhoselatehusband,
wifeorcivilpartnerwasintheserviceoftheBritishCrown.
Dual residents claiming the remittance basisIfyouclaimtheremittancebasisandinthetaxyearyouareresidentinboththeUKandinoneofthecountrieslistedbelow,youwillkeepyourentitlementtoUKpersonalallowancesandtheannualexemptamount(AEA)forchargeablegains,whichanindividualwhoisresidentonlyintheUKandclaimingtheremittancebasisisnotentitledto.
Putan‘X’inbox16ifyou:•arecompletingbox28claimingtheremittancebasisoftaxationandan
entryinbox29isnotappropriate,andyou•areclaimingtobe‘dualresident’andundertheDTAthattheUKhas
withtheothercountryinwhichyouareclaimingtoberesident,youareregardedasresidentinthatothercountry.
Thelistofcountriesis: –Austria,Barbados,Belgium,Fiji,Ireland,Kenya,Luxembourg,
Mauritius,Namibia,Netherlands,Portugal,Swaziland,Sweden,SwitzerlandandZambia.
Page RRN 10
Thisisnolongeranexclusionfromonlinefiling.Howeverifthisboxisnotcompleted,personalallowanceswillnotberetained.
Enterdetailsinthe‘Anyotherinformation’box,box39oftheothercountryinwhichyouclaimtoberesident.
Box 17 Enter the code(s) for the country or countries of which you are a national and/or resident
Whereyouhaveputan‘X’inbox15and/orbox16,youwillneedtoenterinbox17thecode(s)forthecountryorcountriesofwhichyouareanationaland/orresident.
YoucangettherelevantcountrycodesfrompagesFN20toFN22oftheForeign notes.Downloadthesenotesfromhmrc.gov.uk/sa106-notesorphonetheSelfAssessmentOrderlineforacopy.
Residence in other countries and Double Taxation Relief
Box 18 Enter the code(s) for the country or countries, other than the United Kingdom, in which you were resident for tax purposes for 2013–14
Enterinbox18thecountrycode(s)forthecountryorcountries(otherthantheUnitedKingdom(UK))inwhichyouwereresidentfortaxpurposes.YoushouldcompletethisboxevenifyouareresidentinacountrywithwhichtheUKdoesnothaveaDoubleTaxationAgreement.Ifyouliveorlivedinacountrythatdoesnothaveaformalresidencecriterionfortaxorotherpurposes,pleaseusethecode(s)forthatcountry.
YoucangettherelevantcountrycodesfrompagesFN20toFN22oftheForeign notesathmrc.gov.uk/sa106-notes
Box 19 If you were also resident in either or both of the countries entered in box 18 for 2012–13, enter the appropriate code(s)
Youshouldonlyputanentryinbox19ifyouhaveputacountrycodeinbox18,andyouwerealsoresidentineitherorbothofthecountriesenteredforbox18in2012–13inadditionto2013–14.Thesameinformationprovidedforthecompletionofbox18willalsoapplyforbox19.
YoucangettherelevantcountrycodesfrompagesFN20toFN22oftheForeign notes.
Box 20 Amount of Double Taxation Agreement income for which partial relief is being claimed
Completebox20ifyouareclaimingpartialrelieffromUKtaxunderaDoubleTaxationAgreementthatdoesnotrequiretheUKtoexempttheincomebutdoeslimittherateatwhichtheUKcantaxtheincome.
Youshouldentertheamountofsuchincomeinthisboxsothatitcanbetakenintoaccountindetermininganylimitonlossrelieforinterestreliefavailabletoyouforthisyear.
IncomethatisfullyexemptedfromUKtaxbyaDoubleTaxationAgreementshouldnotbeincludedintheamountenteredinthisbox.
AMore guidancePages RRN 17 and RRN 18 give more information about residence in other countries and Double Taxation Agreements.
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 11
Box 21 Relief under Double Taxation Agreements between the UK and other countries – amount claimed because of an agreement awarding residence to another country (see Helpsheet 302)
Completebox21ifyouintendtoclaimreliefunderthetermsofaDoubleTaxationAgreementasa‘dualresident’.
Inadditiontocompletingbox21,completeandsendintheappropriateclaimforminHelpsheet302Dual residents insupportofyourclaim,availableathmrc.gov.uk/helpsheet302
Wherethestatementofreliefintermsoftaxinbox21wouldrequiretheperformanceofunnecessarycalculations,pleaseputabriefexplanatorynoteofthebackgroundtotheclaiminthe‘Anyotherinformation’box,box39.
Whereyouareclaimingreliefandyouwereresidentfortaxpurposesinacountryorcountrieswithataxyearthatfellpartlywithin2013–14andpartlywithin2012–13,pleasegivebriefdetailsinthe‘Anyotherinformation’box,box39.Youwillalsoneedtogetacertificatefromtheoverseastaxauthorityshowingthattheyregardyouasaresidentunderthedomestictaxlawofthatcountryfortheperiodofclaim.
Box 22 Relief claimed because of other provisions of the relevant Double Taxation Agreements (see Helpsheet 304)
Completebox22ifyouareanon-residentandwanttomakeaclaimforDoubleTaxationRelief.Moredetailsaboutthevarioustypesofincomethatreliefcanbeclaimedon,andwheretogoformorehelpandadvice,areprovidedonpagesRRN17andRRN18.
Wherethestatementofreliefintermsoftaxinbox22wouldrequiretheperformanceofunnecessarycalculations,pleaseputabriefexplanatorynoteofthebackgroundtotheclaiminthe‘Anyotherinformation’box,box39.
Inadditiontocompletingbox22,completeandsendintheappropriateclaimforminHelpsheet304Non-residents – relief under Double Taxation Agreements, availableathmrc.gov.uk/helpsheet304
DomicileIfyouarenotusingtheremittancebasisoftaxation,oryourdomicileisnototherwiserelevantfortheyearended5April2014,donotcompleteboxes23to27.
Temporary non-residence and capital gains
Broadly,capitalgainsmadeinyearsthroughoutwhichyouwerenotresidentintheUKmaybetaxablewhenyouresumeresidenceintheUK(onyouryearofreturn)if:•youreturnedtotheUKduring2013–14followingaperiodofresidence
abroad(theyearofreturn)•youbecamenotresidentintheUKin2008–09,2009–10,2010–11,
2011–12or2012–13(the‘yearofdeparture’)•betweenthetaxyearwhenyouwerelastresident,thatis,theyearof
yourdeparture,andtheyearofyourreturntherewerefewerthanfivefulltaxyears,and
•youwereresidentorordinarilyresidentforatleastpartofeachoffouroutoftheseventaxyearsimmediatelypriortotheyearofdeparture.
Youcanfindmoreinformationabouttemporarynon-residentsandCapitalGainsTaxinHelpsheet278,availableathmrc.gov.uk/helpsheet278
AMore guidanceMore information to help you understand your domicile status is available online, go to hmrc.gov.uk/cnr/rdr1.pdf(the section on domicile) and on pages RRN 19 to RRN 22.
Page RRN 12
IfyouareindoubtaboutwhethergainsfromabroadhavebeenreceivedintheUK,orthepreciseamountofthatincomeorgains,askusoryourtaxadviserforhelp.
Box 23 If you are domiciled outside the UK and it is relevant to your Income Tax or Capital Gains Tax liability
Ifyourdomicileisrelevantfortheyearended5April2014,putan‘X’inbox23.Pleasealsocompleteboxes24to27asappropriate.
Box 24 If 2013–14 is the first year you have told us that your domicile is outside the UK
If2013–14isthefirstyearthatyouhaveclaimedtobedomiciledoutsidetheUKfortaxpurposes,pleaseputan‘X’inbox24evenifyouhaveneverbeendomiciledwithintheUK.
Box 25 If you have put ‘X’ in box 23 and have a domicile of origin within the UK, enter the date on which your domicile changed
Whencompletingbox25,ifyoudonothaveaspecificdateonwhichyourdomicilechanged,pleaseuse5Aprilattheendofthetaxyearinwhichthechangetookplace.Ifthetaxyearisanapproximation,pleasemakeanoteofthisinthe‘Anyotherinformation’box,box39.
Box 26 If you were born in the UK but have never been domiciled here
Pleaseput‘X’inbox26ifyouwerebornintheUKbutyourdomicileoforiginisoutsidetheUK.Pleasealsocompleteboxes28to38asappropriate.
Box 27 If you have put ‘X’ in box 23 and you were born outside the UK, enter the date that you came to live in the UK
Thedateinbox27shouldbethatonwhichyoustartedtoliveintheUKasyourhome.InmanycasesthedatethatyoucametoliveintheUKwillbethesameasthedateonwhichyoufirstbecameresidentherefortaxpurposes.ThemainexceptionwilloccurifyouareresidentintheUKsimplybecauseofthenumberofdaysthatyouhavespenthere.Pleasedonotcompletebox27ifyoudonotliveintheUK.
Remittance basis IfyouareresidentintheUKyouwillnormallypaytaxonthe‘arisingbasis’.Thismeansthatyouwillpaytaxonallofyourincomeasitarisesandonyourgainsastheyaccrue,whereverthatincomeandthosegainsareintheworld.YoucanfindmoreinformationonthearisingbasisinRDR1Guidance Note: Residence, Domicile and the Remittance Basis, availableathmrc.gov.uk/cnr/rdr1.pdf
TheremittancebasisisanalternativebasisoftaxationthatisavailabletosomeindividualswhoareresidentintheUK.Youcanclaimtheremittancebasisbycompletingbox28.
Ifyoudonotwanttoclaimtheremittancebasisfor2013–14donotcompleteboxes28to38.
AMore guidanceMore information about the remittance basis is given on pages RRN 20 to RRN 24.
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 13
Box 28 If you are making a claim for the remittance basis for 2013–14
YoucanclaimtobetaxedontheremittancebasisonyourforeignincomeandgainsifyouareresidentbutnotdomiciledintheUK(youhaveputan‘X’inbox23).
Ifyouareclaimingtheremittancebasis,putan‘X’inbox28.Youmustalsocompletebox23toconfirmyourstatus.Youshouldalsocompleteboxes29to32asappropriate.
Ifyouhavecompletedbox12onpageAi2oftheAdditional informationpages(seepageAiN18oftheAdditional information notes)onthebasistheamountisnottaxablebecauseithasnotbeenremittedtotheUK,thenyoumustalsocompletebox28oftheResidence, remittance basis etc. pages.Box29ontheResidence, remittance basis etc.pagesshouldnotbecompletediftheamountyouareenteringinbox12ismorethan£1,999.
Box 29 If your unremitted income and capital gains for 2013–14 is less than £2,000
Putan‘X’inthisboxif:•youareclaimingtheremittancebasisin2013–14,and•youhaveforeignincomeand/orgainsarisingin2013–14,and•lessthan£2,000ofthisforeignincomeand/orgainsremainsunremitted
totheUKat5April2014.
Ifyouhaveputan‘X’inthisboxyoumustalsoputan‘X’inbox28,andalsoinboxes30,31and32ifappropriate.
Havinglessthan£2,000unremittedforeignincomeand/orgainsmeansthatyoucanusetheremittancebasiswithoutlosingyourentitlementtoUKpersonalallowancesandtheannualexemptamount(AEA)forchargeablegains.
Ifyouhavelessthan£2,000unremittedforeignincomeand/orgainsfromthetaxyear,youdonothavetocompleteataxreturnjusttotellusyouareusingtheremittancebasis;butifyouhaverequestedorhavebeensentataxreturnthenyoumustcompleteandsendittous.
Foreign income and/or gains received in currency other than sterlingTocalculatetheamountofyourforeignincomewhichisnotremittedsoastodeterminewhetheryourunremittedincomeandgainsfortheyearisbelow£2,000,youshould,foreachcurrency,deductthetotalforeignincomeofthetaxyearthatwasremittedintheyearfromthetotalforeignincomearisinginthetaxyear.Translatethebalanceforeachcurrencyintosterlingusingtheexchangerateonthelastdayofthetaxyear(5April2014)andtotalthesterlingamountstocalculatetheamountof‘unremitted’foreignincome.
Thismethodofcalculationappliesfordeterminingtheamountofunremittedforeignincomefortheunder£2,000thresholdpurposeonly.Adifferentmethodisusedforcalculatingtheamountofforeignincomeremitted.
Tocalculatetheamountofyourunremittedforeignchargeablegainsusesterlingtranslationsatthedateofacquisitionandthedateofdisposal.
AMore guidanceMore detailed information about exchange rates is available in the Residence, Domicile and Remittance manual. Go to hmrc.gov.uk/manualsa-zExchange rates can be found at hmrc.gov.uk/extrate
PageRRN14
Box 30 IfyouwereUKresidentfor2013–14andfor12ormoreofthepreceding14taxyears
Put an ‘X’ in box 30 if: • you have been a long-term resident in the UK, that is, you have been
resident for 12 or more of the previous 14 tax years, and • you are claiming the remittance basis of taxation for 2013–14 and have
put an ‘X’ in box 28.
If this applies to you then you will pay the remittance basis charge (RBC) of £50,000 unless one of the exceptions below applies – see the notes on page RRN 18. The only exceptions where you do not have to pay the RBC are if:• you have less than £2,000 unremitted foreign income and/or gains from
2013–14. If this applies complete box 29, or • you were under 18 at 5 April 2014. If this applies also complete box 32.
If you put an ‘X’ in box 31 (but not in boxes 29 or 32 because they do not apply) then you should also complete boxes 33 to 39 as appropriate.
Box 31 IfyouwereUKresidentfor2013–14andforsevenormoreoftheprecedingninetaxyears
Put an ‘X’ in box 31 if: • you have been resident in the UK, for seven or more of the previous
nine tax years, (but less than 12 of the previous 14 tax years), and • you are claiming the remittance basis of taxation for 2013–14 and have
put an ‘X’ in box 28.
If this applies to you then you must pay the remittance basis charge (RBC) of £30,000 unless one of the exceptions below applies – see the notes on page RRN 22.
The only exceptions where you do not have to pay the RBC are if:• you have less than £2,000 unremitted foreign income and/or gains from
2013–14. If this applies complete box 29, or• you were under 18 at 5 April 2014. If this applies also complete box 32.
If you put an ‘X’ in box 31 (but not in box 29 or box 32 because they do not apply) then you should also complete boxes 33 to 39 as appropriate.
Box 32 Ifyouwereunder18on5April2014
If box 32 applies to you because you were under 18 years of age at 5 April 2014, you will not need to pay the remittance basis charge (RBC), even if you are a ‘long-term resident’ and have completed box 30 or box 31.
However, you will still lose your entitlement to personal allowances and the annual exempt amount (AEA) if you have completed box 28 and claimed the remittance basis, unless you have less than £2,000 unremitted foreign income and/or gains for 2013–14 and so have also completed box 29. If you are calculating your own tax do not forget to reflect the loss of allowances in your tax calculation.
Boxes 33 and 34 Amountofnominatedincome/capitalgains
If you put an ‘X’ only in boxes 28 and 30 or box 31 you must also complete boxes 33 and 34.
A More guidanceExchangeratescanbefoundathmrc.gov.uk/exrate
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 15
Theremittancebasischarge(RBC)isIncomeTax,CapitalGainsTax,oracombinationofthetwo,chargedonunremittedforeignincomeand/orgainsonthearisingbasis.WhenyoupaytheRBCyoumusttellusonwhatincomeorgainstheRBCischargeablebynominatingtheappropriateincomeand/orgains.Youdothisbyenteringtheamountofnominatedincomeinbox33and/orenteringthenominatedforeigngainsinbox34.
Forthepurposesofdeterminingtheamountofnominatedforeignincomeyoushouldconverteachamountintosterlingattherateofexchangeatthetimewhentheincomearose.Foreigngainsarealwayscomputedinpoundssterlingusingtheratesofexchangeprevailingatthetimewhenthegainiscomputedandwhenallowableexpenditurewasincurred.
TheCapitalGainsTaxrateforindividualsis18%or28%.Thetaxratedependsonthetotalamountofyourtaxableincome.YoucanfinddetailsoftheCapitalGainsTaxratesintheCapital gains summary notes,availableathmrc.gov.uk/sa108-notes
Example 1 Nominating both foreign income and/or capital gainsHenri has claimed the remittance basis and has been UK resident for the past 12 years and his unremitted foreign income for the year 2013–14 is as follows:
Foreign bank interest £80,000 Foreign employment income £80,000 Foreign capital gains £100,000
Henri is a higher-rate taxpayer, and due to the level of his income is liable to the additional 45% tax rate (payable on any income over £150,000), so his RBC calculation is as follows.
He decides to nominate £74,612 of his bank interest and £70,000 of his capital gains.
£11,112 x 45% = £5,000 Income Tax £63,500 x 40% = £25,400 Income Tax £70,000 x 28% = £19,600 Capital Gains Tax
Henri would enter the £74,612 nominated income amount in box 33 and the £70,000 nominated capital gains amount in box 34.
Ifyouarecalculatingyourowntax,theIncomeTaxorCapitalGainsTaxelementsoftheRBCwillneedtobeincludedintheamountoftotaltax.IfyouareusingtheTax calculation summarypageaddeither£30,000or£50,000totheamountinbox1.DonotforgettoreflectlossofpersonalallowancesandAEAinyourtaxcalculation.
TheIncomeTaxelementoftheRBCwhichrelatestonominatedincomewillbeavailabletocoverUKGiftAiddonations.
IfyouareliabletopaytheRBC,youmustenteranominatedfigureofatleast£1ineitherbox33orbox34.Ifyoudonotnominateenoughincomeand/orcapitalgainsliabletoproduceeitherthe£30,000or£50,000RBCthen,aswellaswhatyouactuallynominated,youwillbetreatedasnominatingsufficientadditionalincometoincreasetheRBCtoeither£30,000or£50,000whicheverisapplicable.However,thereareconsequencesinrelationtoForeignTaxCreditReliefandthepreventionofdoubletaxationifyouchoosetomakeaninsufficientorunder-nomination.YoushouldrefertotheadditionalguidanceandlookattheexamplesintheResidence,DomicileandRemittancemanual,availableathmrc.gov.uk/manualsa-z
Page RRN 16
Example 2Ben has claimed the remittance basis for 2013–14 and his unremitted foreign income and/or gains are as follows:
Foreign bank interest £75,000 Foreign employment income £80,000 Foreign capital gains £25,000
Ben is a higher-rate taxpayer. He chooses to nominate only his £25,000 capital gains. The RBC so far consists of:
£25,000 x 28% = £7,000 Capital Gains Tax
In this case the RBC must total £30,000, so an amount of Income Tax of £23,000 is required. Therefore, £56,806 of additional income is to be ‘treated’ as nominated, as Ben’s income exceeds £150,000 he will be liable to the 45% additional rate band
£5,556 x 45% = £2,500 Income Tax £51,250 x 40% = £20,500 Income Tax The RBC therefore consists of £7,000 Capital Gains Tax and £23,000 Income Tax.
Youshouldprovideadditionalinformationaboutyournominatedincomeandgainsinthe‘Anyotherinformation’box,box39(seethenotesforbox39).
Box 35 Adjustment to payments on account for capital gains
Ifyouhavemadeanominationofcapitalgainsinbox34,thenyoumustcompletebox35.
OnlytheIncomeTaxelementoftheRBCistakenintoaccountincalculatingthepaymentsonaccount.CapitalGainsTaxisneverincludedincalculationsofpaymentsonaccountandanypartoftheRBCcomingfromcapitalgainswillnotformpartofthefollowingyearspaymentsonaccount.PleaseentertheamountofCapitalGainsTaxincludedineitherthe£30,000orthe£50,000RBC.
Ifyouarecalculatingyourowntax,pleaseexcludetheamountinbox35inyourcalculationofpaymentsonaccount.IfyouareusingtheTax calculation summary page,yourfirstpaymentonaccountfor2014–15inbox10willnotincludeanypartoftheamountinbox35.
Box 36 If you have remitted nominated income or gains during 2013–14
Putan‘X’inbox36ifyouhaveremittedanynominatedforeignincomeand/orgainsinexcessof£10foranytaxyearduring2013–14.Iftheamountofremittednominatedincomeand/orgainscoversmorethanoneyear,pleasegiveabreakdowninthe‘Anyotherinformation’box,box39.
Anyoftheforeignincomeand/orgainswhichyouhavenominatedandwhichyouremittotheUKwillnotbetaxedagain.However,therearecertainorderingrulesifyouremitanynominatedforeignincomeand/orgainsinexcessof£10whileanyforeignincomeand/orgainsthatwerenotsonominatedremainoverseas.
Youcanremitnominatedincomeand/orgainsforanytaxyearforwhichanominationhasbeenmadewithoutbecomingsubjecttotheidentificationrulesaslongasitiswithinthe£10aggregatelimit.
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 17
Box 37 If you are claiming relief from UK tax for foreign income and/or gains invested in a qualifying business during 2013–14
Ifyouhavemadeanyinvestmentsinqualifyingcompaniesunderthebusinessinvestmentreliefprovisionsforremittancebasistaxpayersyoushouldcompletebox37.
Box 38 If you have previously claimed relief for a qualifying investment and the investment no longer qualifies for relief
Youshouldputan‘X’inbox38andthengivedetailsoftheamountoftheinvestmentthatnolongerqualifiestogetherwiththecompanyregistrationnumberinthe‘Anyotherinformation’box,box39.
Box 39 Any other information
Youmustgivedetailsifyouhavecompletedboxes33or34,35and38.Weneedthisinformationtovalidateyournomination,andtoconfirmanyUKGiftAiddonations,DoubleTaxationReliefclaimsandsoforth.
Youshouldidentifythepreciseincomeandgainsyouhavenominatedatboxes33and/or34,includingthecountryoforiginandthetypeandsourceoftheincome(forexample,thebankaccountoremploymenttowhichitrelates),showthecomputationofthegain(ifapplicable)andtheexchangeratesused.
Ifyouhavedeductedanyexpensesorlossesfromtheincomeorgainsinarrivingatthefinaltaxableamount,thenfulldetailsoftheamountsandnatureofthoseexpensesorlossesmustalsobegiven.
Allotheradditionalinformationaskedforinboxes13,21,22and36shouldalsobeincludedhere.
More information
Considering your residence status
ItisimportantthatyouunderstandhowtoworkoutifyouareresidentintheUK(England,Wales,ScotlandandNorthernIreland)asyourindividualcircumstanceswillaffectwhatUKtaxyouneedtopay.FormoreinformationonhowtodetermineyourresidencestatuspleaserefertoRDR3Guidance Note: Statutory Residence Test (SRT),availableathmrc.gov.uk/international/rdr3.pdf
Residence in other countries and Double Taxation Relief
Double Taxation Agreements
ADoubleTaxationAgreement(DTA)isanarrangementbetweenthegovernmentsoftwocountriestoresolvetaxationissuesaffectingthemboth.Agreementscontaindetailedprovisionsdesignedtoeliminate,orrelieve,thedoubletaxationthatcanoccurwhenincomearisesinonecountrytoaresidentofanother.Theydothisbyeitherexemptingtheincomefromtaxinonecountry,orbyreducingtherateatwhichtaxischargedinonecountryandallowingcreditforthatreducedrateoftaxintheother.
AMore guidanceIf you are resident in the UK and another country, please see chapter 12 of RDR1 which tells you about Double Taxation Agreements (DTAs). Go to hmrc.gov.uk/cnr/rdr1.pdf
Page RRN 18
Double Taxation Relief – dual residence
It is possible to be resident in the UK under our tax rules and at the same time be considered as resident in another country under that country’s rules. This is called dual resident.
IftheothercountryisonewithwhichtheUKhasaDTA,theagreementwillusuallyprovidespecialrulesfordetermininginwhichofthetwocountriesyouareregardedasaresident(butonlyforthepurposeofapplyingitsdetailedprovisions).
Ifyouaredualresident,youmaybeentitledtoclaimtheexemptionsandreliefsfromUKtaxgrantedtoresidentsofthatothercountry.
TherulesfordeterminingresidenceforthepurposesofaDTAcanbecomplex.Forexample,theylookatyour‘permanenthome’,yourpersonalandeconomicrelationswithbothcountries,whereyouhavean‘habitualabode’,andyournationality.Someofthesetermshavespecialmeaningsandinterpretationofthemisnotalwaysstraightforward.Notallagreementshaveidenticalrules,orasimilareffectontaxliability.
Youcanfindthepreciseconditionsforexemptionorreliefintherelevantagreement.Ifyouneedmorehelp,askusoryourtaxadviser.Helpsheet302Dual residentsgivesyouinformationthatwillallowyoutodecidewhetheryouarearesidentoftheUKoranothercountryforthepurposesofapplyingtheprovisionsoftheDTAbetweentheUKandthatothercountry.
Non-UK residents and Double Taxation Agreements
IfyouarenotresidentintheUKbutresidentinacountrywithwhichtheUKhasaDTA,youmaybeabletogetrelieffromUKtaxunderthetermsofthatagreementforincomearisingintheUKfrom:•pensions(althoughonlyafewagreementsallowreliefforUKgovernment
pensions)andsomeannuities•royalties•propertyincomedistributions•interest.
Someagreementsrequireyoutobesubjecttotaxintheothercountryontheincomeinquestion,beforeyougetrelieffromUKtax.Youcanfindthepreciseconditionsforexemptionorreliefintherelevantagreement.Itisnotpossibletogivefulldetailshereastheyvarybetweenagreements.ToclaimDoubleTaxationReliefdownloadHelpsheet304Non-residents – relief under Double Taxation Agreements, from hmrc.gov.uk/helpsheet304orphonetheSelfAssessmentOrderlineforacopy,andcompletebox21toclaimrelief.
Non-residents and UK property income
EventhoughyoumaybenotresidentintheUKyoucouldbeliabletoUKtaxonincomearisingintheUK,includingpropertyincome.Thisissowhetherornottaxisdeductedbyyourlettingagentortenants,ifthereisnolettingagent.YoushouldcompletetheUK propertypages,availableathmrc.gov.uk/sa105orphonetheSelfAssessmentOrderlineforacopy.
YouarenotliabletoUKtaxifyourtotalUKtaxableincome(includingnetpropertyincome)islessthananyUKtaxallowancetowhichyoumaybeentitled.
Anon-residentindividualwhoisentitledtoUKpropertyincomemay,incertaincircumstances,applytoreceivethatincomewithnotaxdeducted.Askusaboutthis.YoushouldcompletetheUK propertypages.
AMore guidanceTo help you determine your residence and domicile status, go to hmrc.gov.uk/ cnr/rdr1.pdf
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 19
Domicile
IfyouarenotresidentintheUKyouwillnotusuallyneedtoconsiderdomicileforIncomeTaxandCapitalGainsTaxpurposes.Domicileisrelevantonlyifyouhaveforeignincomeand/orgainsduringataxyear.Ifyoudonot,thenyourdomicilestatushasnobearingonyourUKIncomeTaxorCapitalGainsTaxliability.
Domicileisagenerallawconceptandmayhavewiderimplicationsforyourpersonalaffairs.Therearemanyfactorsthataffectyourdomicile.SomeofthemainpointsyoushouldconsiderifyouareclaimingnottobedomiciledintheUKare:•youcannotbewithoutadomicile•youcanonlyhaveonedomicileatatime•youarenormallydomiciledinthecountrywhereyouhaveyour
permanenthome•yourexistingdomicilewillcontinueuntilyouacquireanewone•domicileisdistinctfromnationalityandresidence,althoughbothcanhave
animpactonyourdomicile.YoumayberesidentintheUKbuthaveadomicilesomewhereelse
•thefactthatyouregisterandvoteasanoverseaselectorisnotnormallytakenintoaccountwhendecidingwhetherornotyouaredomiciledintheUK.
ReferencestobeingdomiciledintheUKarereferencestobeingdomiciledinanypartoftheUK.
TherearethreetypesofdomicileforIncomeTaxandCapitalGainsTaxpurposes:•domicileoforigin•domicileofchoice•domicileofdependence.
Domicile of origin
Younormallyacquireadomicileoforiginfromyourfatherwhenyouareborn.Itneednotbethecountryinwhichyouwereborn.Adomicileoforiginmaychangeasaresultofadoptionandisnoteasytodisplace.Forexample,evenifyouleavethecountryofyourdomicileoforigin,youwillcontinuetobedomiciledthereuntilyouacquireadomicileofchoiceelsewhere.
Domicile of choice
Youhavealegalcapacitytoacquireanewdomicileattheageof16.Broadly,toacquireadomicileofchoice,youmustleaveyourcurrentcountryofdomicileandsettleinanothercountry.
Domicile of dependence
Untilyouhavethelegalcapacitytochangeit,yourdomicilewillfollowthatofthepersononwhomyouarelegallydependent.Ifthedomicileofthatpersonchanges,youwillautomaticallyacquirethesamedomicile,inplaceofyourdomicileoforigin.
Before1974amarriedwomanautomaticallyacquiredherhusband’sdomicile.Asamarriedwomanwhomarriedbefore1974,youwouldkeepyourhusband’sdomicileuntilyoulegallyacquireanewdomicile.AnexceptiontothisruleistheDTAbetweentheUKandtheUSA,whichprovidesthatamarriagebefore1974betweenawomanwhoisaUSnationalandamandomiciledwithintheUKisdeemedtohavetakenplaceon1January1974.
AMore guidanceMore guidance on all of the remittance basis rules is available in RDR1 or in the remittances technical manual. Go to hmrc.gov.uk/manualsa-z
Page RRN 20
Relevance of your domicile to your tax liability
Havingreadtheguidelineson‘Domicile’onpageRRN19,ifyouthinkyouarenotdomiciledintheUKyoumustnowdecidewhetherdomicilehasanyimmediaterelevancetoyourUKtaxliability.Yourdomicilestatusisgenerallyonlyrelevantifyouareclaimingtheremittancebasisoftaxationfor2013–14foryourforeignincomeand/orgains;pleaseseethenotesstartingbelow.
Remittance basis
Substantialchangesweremadetotheremittancebasisoftaxationfrom6April2008,withfurtherchangesfrom6April2012.Ifyouhaveusedtheremittancebasisinpreviousyearsandhaveremittedanyincomeorgainsin2013–14,and/orifyouareplanningtousetheremittancebasisthisyear,youarestronglyadvisedtoalsolookattheadditionalguidanceonourwebsitewhichgivesmoredetailonallthesechanges.
Ifyoudonotclaimtousetheremittancebasisyouwillusuallybetaxedonyourworldwideincomeandgainsinthenormalway.Youmayalsobechargeableonanyincomeandgainsthataroseinapreviousyear,ayearforwhichyouweretaxedontheremittancebasisiftheyarebroughtto,receivedorusedintheUKintheyear.
Using the remittance basis without completing a tax return
Normallyyoumustclaimtousetheremittancebasisonthesepagesofyourtaxreturn.Howeverinsomecircumstances,andaslongasyoumeetcertainrequirements,youmaybetaxedontheremittancebasiswithoutneedingtocompleteataxreturn.Broadly,thiswillapplyonlyifyouarenotdomiciledintheUKbutareworkinghereandyouhave:•unremittedforeignincomeand/orgainsoflessthan£2,000forthe
taxyear,or•youhavebeenresidentintheUKforfewerthansevenofthenine
taxyearsbefore2013–14and —youhavenoforeignincomeand/orgainsandnoUKincomeand
gains(excepttaxedUKinvestmentincomeoflessthan£100),and —youhadnotaxableremittancesofyourforeignincomeand/orgains
totheUKduring2013–14.
Evenifthesecriteriaapply,ifyouneedtocompleteataxreturnforsomeotherreason,forexample,youreceiveanuntaxedsourceofincome,youshouldclaimtheremittancebasisusingbox28.
Ifyoumeetthenecessary‘requirements’abovebutyoudonotwanttheremittancebasistoapplyautomatically,youwillneedtocompleteataxreturndeclaringyourforeignincomeand/orgainsonthenormalarisingbasis.YoudonotneedtocompletetheseSA109pages,butyoumaywanttonotethatyouarenotusingtheremittancebasisinthe‘Anyotherinformation’box,box19onyourtaxreturn.
FormoreinformationonthisyoucanrefertoRDR1Guidance Note: Residence, Domicile and the Remittance Basis.
Consequences of claiming the remittance basis
IfyouclaimtheremittancebasisthismeansthatyouareliabletoUKtaxonyourforeignincomeand/orgainsonlywhentheseareremitted,thatisbroughtto,orreceivedorusedintheUKinanyway(seepageRRN23forthemeaningof‘remittedtotheUK’).YoushouldenterthefullamountonlyofwhatyouhaveremittedtotheUKin2013–14intherelevantboxesonyourtaxreturn.
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 21
Example 3Ian is resident but not domiciled in the UK. He has claimed the remittance basis for 2013–14, and for earlier years too. He opened an overseas interest-bearing bank account in 2009–10 and interest arose as follows:
2010–11 2011–12 2012–13 2013–14
£200 £400 £500 £500
If none of the interest was received in the UK in 2010–11, 2011–12 or 2012–13, but £800 was brought to the UK in 2013–14, Ian will be liable to UK Income Tax for 2013–14 on £800, even though only £500 arose in that year. Ian will enter £800 on the Foreign pages.
Ifyoudonotwanttousetheremittancebasisforforeignincomeand/orgainsarisingin2013–14donotcompleteboxes28to38.Instead,youshouldenterallyourincomeandgainsarisingin2013–14onyourtaxreturn.Ifyouusedtheremittancebasisinearlieryearsyoushouldalsotellusaboutanyremittancesofforeignincomeand/orgainsthataroseinthoseearlieryearsbutwereremittedin2013–14,ontherelevantpagesofyourtaxreturn.
Loss of personal allowances and annual exempt amount
Ifyouclaimtheremittancebasisoftaxationfor2013–14youwillloseyourentitlementtoUKpersonalallowancesandtheannualexemptamount(AEA)forcapitalgains,unlessbox29appliestoyou.Ifyouarecalculatingyourowntax,donotforgettoreflectthelossoftheseinyourtaxcalculation.
Themainexceptiontothisiswhereyouhaveforeignincomeand/orgainsarisingin2013–14ofwhichlessthan£2,000remainsunremittedtotheUKat5April2014.Youwillkeepyourpersonalallowancesinthissituation.FormoreinformationreadRDR1 Guidance Note: Residence, Domicile and the Remittance Basis, availableathmrc.gov.uk/cnr/rdr1.pdf
Dual residents
Theotherexceptionisifyouare‘dualresident’(seepageRRN17),youshouldnowcompletebox16wherethisisthecase.Box16providesmoredetailsonthispoint.
Example 4Martha is resident but not domiciled in the UK in 2013–14.
She receives interest of £20,000 on an offshore bank account, of which she transfers £19,000 to the UK in 2013–14. She has no other foreign income or gains in the year.
Martha decides to use the remittance basis. She shows £19,000 interest on the Foreign pages. She has less than £2,000 unremitted income and gains from 2013–14 so she will not lose her personal allowances and annual exempt amount (AEA).
Remittance basis charge
Ifyouclaimtheremittancebasisfor2013–14andyouhavebeenresidentintheUKforsevenormoreofthepreviousninetaxyears(thatis,atleastsevenoutofthetaxyearsbetween2004–05and2012–13),youmayhavetopaytheremittancebasischarge(RBC)of£30,000.IfyouhavebeenresidentintheUKfor12ormoreoftheprevious14taxyears(thatis,atleast12outofthetaxyearsbetween1999–2000and2012–13),youmayhavetopaytheremittancebasischarge(RBC)of£50,000.TheRBCisanannualtaxchargeofeither£30,000or£50,000fornominatedforeignincomeand/orgainsleftoutsidetheUK.ItischargeableinadditiontoanyUKtaxdueonanyforeignincomeand/orgainsremittedtotheUK.
Page RRN 22
Example 5Wayne is resident in the UK in 2013–14. His offshore income and capital gains are £200,000. Wayne has been resident in the UK for the preceding years as follows:
2004–05
2007–08
2008–09
2009–10
2010–11
2011–12, and
2012–13
Wayne lived in Spain during tax years 2005–06 and 2006–07.
He has therefore been resident for seven of the preceding nine years and so he must pay the RBC of £30,000 if he wants to use the remittance basis in 2013–14.
Youmaynothavetopaytheremittancebasischargeincertaincircumstances.Thiswilldependuponyourageandtheamountofyourforeignincomeand/orgains.Thenotesforboxes29and33providemoreinformationaboutthis.
High Income Child Benefit Charge
Ifyoupaytheremittancebasischarge(RBC)youmaybecomeliabletotheHighIncomeChildBenefitCharge(HICBC)evenifyouhavelittleornoUKincome.ThisisbecausetheforeignincomeyounominatetogeneratetheRBCwillusuallybemorethanthe£50,000incomethresholdthattriggerstheHICBC.Thiswillbethecaseevenifyounominateonlyasmallamountofforeignincome.
IfyournominationisofforeigncapitalgainsitispossibleyoumaynotbeliabletotheHICBCastheChildBenefitChargeisonlytriggeredbyincomeandnotgains.Asmallcapitalgainsnominationwouldnotachievethisastheremainderofthenominationwouldbedeemedtobefromunremittedforeignincome.
Paying the remittance basis charge (RBC)
IfyoupaytheRBCfromoutsidetheUKwithuntaxedincomeorgains,itwillnotbetreatedasaremittanceintheyearprovidedthepaymentismadedirecttousbycheque,orelectronictransfer.
Iftheclaimtotheremittancebasisislaterwithdrawnandthe£30,000orthe£50,000isrepaidtoyou,itwillberegardedasaremittancewhentherepaymentismadeandwillbesubjecttoUKtax.
Ifyoumakeapaymentonaccountinanticipationtoaclaimtoremittancebasisthatyoudonotsubsequentlymake,thenifmoneyequaltothisamountistakenoffshoreby15March2015itwillnotberegardedasataxableremittance.
AMore guidanceMore information on ‘Remitted income and gains’ can be found in both the glossary in section 1 and in section 5 covering the ‘Remittance basis’ in HMRC6. Go to hmrc.gov.uk/ cnr/hmrc6.pdf
A ContactsTo download the form and related helpsheets go to hmrc.gov.uk/sa109
For more information about Self Assessment go to hmrc.gov.uk/sa orhmrc.gov.uk/sacontactus
Page RRN 23
Meaning of ‘remitted to the UK’
Incomeorgainsare‘remittedtotheUK’ifmoneyorpropertyisbroughtto,orreceivedin,orusedintheUKorifaserviceisprovidedintheUKandpaidforwithforeignincomeand/orgains.Theprecisemethodofremittancemakesnodifference.Anycommerciallyrecognisedformofmoney,suchascash,notes,cheques,promissorynotes,billsofexchangeorfinancialcredit,canconstituteataxableremittance.
Therulesregardingwhatconstitutesaremittancehavechangedconsiderablyfrom6April2008,andthedefinitionsofaremittancemayincluderemittancesmadetoorbyrelevantpersons,whichincludesyourspouseorcivilpartner,andminorchildrenorgrandchildren.IfyoubringinmoneyorotherpropertytotheUKorifyoubenefitfromoruseyourforeignincomeand/orgainsinrelationtoaserviceprovidedintheUK,theremaybeataxableremittance.
TherearealsorulesrelatingtodebtsconnectedtoUKproperty,andgiftstogiftrecipients.Themoneyorpropertydoesnothavetobephysicallyimportedfromoverseas.Itmay,forexample,bereceivedintheUKfromanotherUKresident,inreturnformoney,orassetsrepresentingincomeorgains,beingtransferredtothemabroad.
Election of foreign losses
TheelectionofforeignlosseswillneedtobeconsideredifyouarenotdomiciledintheUKandwanttooffsetanyoverseaslossesagainstyourforeignchargeablegains.Thismustbedoneaspartofyourclaimtotheremittancebasis,andshouldbemadeontheCapital gains summary pagesofthetaxreturn.Theelectioncanbemadeinthe‘Anyotherinformation’boxontheCapital gains summarypagesandshouldnotbemadeonthesepages.
Pleasenote,itwillnotbepossibletomakeanelectionafterthefirstyearinwhichtheremittancebasisisclaimedfrom2008–09onwards.
YoucanfindmoreinformationonthissubjectinguidancenoteHMRC6Residence, Domicile and the Remittance Basis, availableathmrc.gov.uk/cnr/hmrc6.pdf
Temporary non-residents and the remittance basis
Therulesontemporarynon-residentsmayapplytoanyremittancesin2013–14ofrelevantforeignincomethataroseinyearsuptoandincludingtheyearending5April2013,ifyouwereresidentintheUKandclaimedtheremittancebasisinthoseearlieryears.
Broadly,relevantforeignincomeisforeignincomeotherthanforeignemploymentincome.AnyremittancesmadeinyearsthroughoutwhichyouwerenotresidentintheUKmaybetaxablewhenyouresumeresidenceintheUK(inyour‘yearofreturn’)if:•youreturnedtotheUKduring2013–14followingaperiodofresidence
abroad(theyearofreturn)•youbecamenotresidentintheUKin2008–09,2009–10,2010–11,
2011–12or2012–13(the‘yearofdeparture’)•betweenthetaxyearwhenyouwerelastresident,thatis,theyearof
yourdepartureandtheyearofyourreturn,therewerefewerthanfivefulltaxyears,and
•youwereresidentorordinarilyresidentforatleastpartofeachoffouroutoftheseventaxyearsimmediatelypriortotheyearofdeparture.
A Information• Go to
hmrc.gov.uk/contactus• Phone the SA Helpline
on 0300 200 3310.• Phone the SA Orderline
on 0300 200 3610 for paper copies of the helpsheets and forms.
PageRRN24
There are comparable rules for chargeable gains accruing to temporary non-residents. You can find more information in Helpsheet 278 Temporary non-residents and Capital Gains Tax, available at hmrc.gov.uk/helpsheet278
If temporary non-residence is claimed then a declaration will need to be made on the Foreign pages. You should provide more details in the ‘Any other information’ box, box 39.
You can find more details on the temporary non-resident rules in RDR1 Guidance Note: Residence, Domicile and the Remittance Basis.
If you are in doubt about whether income or gains from abroad have been received in the UK, or the precise amount of that income or those gains, ask us or your tax adviser for help.
More advice
Non-resident entertainers and sportspersons can get more help from the following office.
Non-resident entertainers and sportspersonsCharities, Savings and International 1HM Revenue and CustomsBX9 1AU
Phone: 03000 547 395 (from UK) 00 44 3000 547 395 (from overseas)
Thesenotesareforguidanceonlyandreflectthepositionatthetimeofwriting.Theydonotaffecttherightofappeal.