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STOP PRESS: At Spring Budget 2024, the Chancellor announced that the remittance basis would be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

Individuals using the remittance basis of taxation should be advised to set up foreign accounts correctly, and use them carefully. This guidance note explains why this should be done and suggests which accounts may be useful.

To understand the issues involved, you should first read the Remittance basis ― nomination, charge and payment and the Remittance basis ― mixed funds guidance notes. An outline of the remittance basis can be found at the Remittance basis ― overview guidance note.

This guidance note discusses the legislation that applies from 6 April 2008, and deals only briefly with transitional rules. For the earlier rules, see RDRM36000–RDRM36470.

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