Frequently Asked Questions
What is the remittance basis?
The remittance basis is a tax regime for non-UK domiciled individuals who are UK tax residents. It allows you to pay UK tax only on foreign income and gains that you bring (remit) into the UK, rather than on your worldwide income.
What is the Remittance Basis Charge?
After 7 years of UK residency, non-doms must pay a Remittance Basis Charge (RBC) of £30,000/year (7-12 years) or £60,000/year (12+ years) to use the remittance basis, in addition to UK taxes.
What changed with non-dom rules from April 2025?
The UK government announced the abolition of the non-dom regime from April 2025, replacing it with a residence-based system. New arrivals get a 4-year exemption on foreign income. Existing non-doms have transitional arrangements.
Who can use the remittance basis?
UK resident individuals who are not UK domiciled, and who have foreign income or gains they do not intend to bring to the UK. UK domiciled individuals cannot use the remittance basis.
What counts as a remittance to the UK?
Bringing money or assets to the UK, using foreign funds in the UK (e.g., paying UK credit cards from a foreign account), or benefiting from foreign funds through gifts or services in the UK.
What is domicile and how is it different from residence?
Domicile is broadly where you consider your permanent home — usually acquired at birth from your father. It is harder to change than residence. You can be UK resident for decades while remaining non-UK domiciled.
Do I lose my personal allowance on the remittance basis?
Yes. If you elect for the remittance basis and are not a long-term resident, you lose your UK personal allowance and CGT annual exempt amount.
Can I bring some foreign income to the UK and keep some offshore?
Yes. Only the amounts you remit are taxed. However, the "mixed fund" rules mean you must identify what you are remitting in a specific order (income first, then gains, then capital).
What is the £2,000 threshold?
If your unremitted foreign income is less than £2,000, you can use the remittance basis automatically without losing your personal allowance or paying the RBC.
Do I need to tell HMRC I am using the remittance basis?
Yes. You must claim the remittance basis on your self-assessment return each year. It is not automatic (except the £2,000 threshold rule).
What happens to offshore funds after the non-dom regime is abolished?
Under transitional arrangements, pre-2025 income and gains sheltered offshore may benefit from a Temporary Repatriation Facility (TRF) allowing remittance at a reduced 12% tax rate in 2025-2027.
Is the remittance basis still worth using?
With the 2025 reforms, new non-doms get a 4-year exemption without the complexity of the remittance basis. For those already using it, transitional rules apply. Specialist advice is essential.