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Home / Simons-Taxes /Personal and employment tax /Part E6 Overseas issues /Division E6.3 Domicile and the remittance basis /The remittance basis / E6.324G Long term residents and the remittance basis charge (RBC)
Commentary

E6.324G Long term residents and the remittance basis charge (RBC)

Personal and employment tax

Before 6 April 2008, a non-domiciled taxpayer could claim, at no cost, to be taxed on the remittance basis. This enabled them to protect all their non-UK income and gains from UK tax as long as the funds were not brought into this country.

From 6 April 2008, there is effectively an annual 'fee' called the remittance basis charge (RBC) where long-term UK residents claim the remittance basis. For more details on claiming the remittance basis, see E6.324F. The taxpayer is required to claim the remittance basis unless they meet the conditions for it to apply automatically, see E6.324E.

For an overview of the remittance basis, see E6.324A.

Meaning of long-term resident

'Long-term resident' is not a statutory term but covers individuals who are 18 or over in the tax year, resident in the tax year and have been UK-resident1:

  1. Ìý

    •ÌýÌýÌýÌý in at least 7 out of the 9 preceding tax years (the 7-year residence test)2

  2. Ìý

    •ÌýÌýÌýÌý in at least 12 out of the 14

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