Glossary · UK
What is Remittance Basis?
The pre-April 2025 UK tax regime for non-domiciled residents, taxing only UK income and foreign income brought into the UK.
Full Definition
The remittance basis was the UK tax treatment available to individuals who were UK resident but not UK domiciled (non-doms). Under the remittance basis, a non-dom was only taxed in the UK on foreign income and gains if those amounts were "remitted" (brought to or used in) the UK; unremitted foreign income and gains were not subject to UK tax. The remittance basis was abolished with effect from 6 April 2025 and replaced by the Foreign Income and Gains (FIG) regime. Under the old rules, the remittance basis was available automatically (without charge) for individuals with less than £2,000 of unremitted foreign income and gains. For those with more, claiming the remittance basis meant losing the Personal Allowance and CGT Annual Exempt Amount. In addition, long-term UK residents (those who had been UK resident in at least 7 of the previous 9 tax years) had to pay the Remittance Basis Charge: £30,000 per year (7/9 years), rising to £60,000 (12/14 years) and £90,000 (those who were "deemed domiciled" could not use it). The Temporary Repatriation Facility (TRF) allows former non-doms to remit pre-April 2025 foreign income and gains at reduced rates of 12% (2025/26 and 2026/27) or 15% (2027/28).