[rɪˈmɪtəns ˈbeɪsɪs]
Remittance Basis allows non-domiciled individuals who are residents in the UK to not pay tax on foreign earnings that aren’t brought into a UK bank account.
Remittance Basis is an alternative tax treatment that applies to Non-domiciled individuals who are residents in the United Kingdom. This treatment allows these individuals to avoid paying UK tax on foreign income or capital gains that are not brought into the country. However, they will still have to pay Income Tax and Capital Gains tax on any income brought into the UK.
Individuals that choose to claim the Remittance Basis lose their tax-free allowances in the UK and are required to pay the Remittance Basis charge.
For the 23/24 tax year, this charge has two tiers. The lower tier is £30,000 per tax year and for individuals who were resident in the UK for at least 7 of the previous 9 tax years. The higher tier is £60,000 per year and is for individuals who have been resident in the UK for at least 12 of the previous 14 tax years.
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