OpenLegislation

Section 809H Claim for remittance basis by long-term UK resident: chargeF1C1C2C3

United Kingdom

(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

(F2c)

the individual meets F3... the 12-year residence test or the 7-year residence test for the relevant tax year.

(F41A)

See section F5809CF6..., (1A) and (1B) for when an individual meets F7... the 12-year residence test or the 7-year residence test for a tax year.

(2)

Income tax is charged on nominated income, and capital gains tax is charged on nominated chargeable gains, as if section 809B did not apply to the individual for the relevant tax year (and neither did section 809D).

(3)

“Nominated” income or chargeable gains means income or chargeable gains nominated under section 809C in the individual's claim under section 809B for the relevant tax year.

(F83A)

If the individual is a Scottish taxpayer for the relevant tax year, the individual is to be treated for the purpose of calculating income tax charged by virtue of subsection (2) as if the individual were not a Scottish taxpayer for that year.

(F93B)

If the individual is a Welsh taxpayer for the relevant tax year, the individual is to be treated for the purpose of calculating income tax charged by virtue of subsection (2) as if the individual were not a Welsh taxpayer for that year.

(4)

If the relevant tax increase would otherwise be less than F10the applicable amount, subsection (2) has effect as if—

(a)

in addition to the income and gains actually nominated under section 809C in the individual's claim under section 809B for the relevant tax year, 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 tax year apart from subsection (2).

(F115A)

The references to income tax in subsection (5) do not include income tax under section 424 (gift aid).

(F125B)

The applicable amount” is—

F13(za)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a)

if the individual meets the 12-year residence test for the relevant tax year, F14£60,000;

(b)

if the individual meets the 7-year residence test for the relevant tax year, £30,000.

(6)

Nothing in subsection (4) affects what is regarded, for the purposes of section 809I or 809J, as nominated under section 809C.

Annotations

Textual amendments

F1

Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)

F2

S. 809H(1)(c) substituted (17.7.2012) (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 3(2)

F3

Words in s. 809H(1)(c) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(5)(a)

F4

S. 809H(1A) inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 3(3)

F5

Words in s. 809H(1A) substituted (with effect in accordance with s. 24(4) of the amending Act) by Finance Act 2015 (c. 11), s. 24(3)(b)(i)

F6

Words in s. 809H(1A) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(5)(b)(i)

F7

Words in s. 809H(1A) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(5)(b)(ii)

F8

S. 809H(3A) substituted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by Finance Act 2014 (c. 26), Sch. 38 para. 8

F9

S. 809H(3B) inserted (24.7.2018) by Wales Act 2014 (c. 29), ss. 9(8), 14, 29(4); S.I. 2018/892, art. 3 (with arts. 5, 6, 8)

F10

Words in s. 809H(4) substituted (17.7.2012) (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 3(4)

F11

S. 809H(5A) inserted (with effect in accordance with Sch. 27 para. 15(1) of the amending Act) by Finance Act 2009 (c. 10), Sch. 27 para. 5

F12

S. 809H(5B) inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 3(5)

F13

S. 809H(5B)(za) omitted (with effect in accordance with Sch. 8 para. 14(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 14(5)(c)

F14

Sum in s. 809H(5B)(a) substituted (with effect in accordance with s. 24(4) of the amending Act) by Finance Act 2015 (c. 11), s. 24(3)(c)(ii)

Modifications

C1

S. 809H excluded (with effect in accordance with Sch. 8 para. 16(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 16(3)

C2

S. 809H excluded (with effect in accordance with Sch. 8 para. 15(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 15(3)

C3

Ss. 809G, 809H excluded (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 2(3)

Notes on Chapter A1

Modifications

C1

Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)

C2

Pt. 14 Ch. A1 modified by 1988 c. 1, s. 762ZB(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)

C3

Pt. 14 Ch. A1 modified by 1992 c. 12, s. 87B(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119))

C4

Pt. 14 Ch. A1 modified (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 19(3)

C5

Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41F(8) (as substituted (6.4.2015) by Finance Act 2014 (c. 26), Sch. 9 paras. 5, 47 (with Sch. 9 para. 48))

C6

Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643F(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

C7

Pt. 14 Ch. A1 modified by 2005 c. 5, s. 643N(3)(4) (as inserted (with effect for the tax year 2018-19 and subsequent years) by Finance Act 2018 (c. 3), Sch. 10 paras. 11, 21(1) (with Sch. 11 para. 22))

C8

Pt. 14 Ch. A1 modified (temp.) (for the tax years 2025-26, 2026-27 and 2027-28) by Finance Act 2025 (c. 8), Sch. 10 para. 18(1)(2)