RDRM33220 - Remittance Basis: Identifying Remittances: Condition C - Gift Recipients: Gift recipients - remittances arising from enjoyment of qualifying property by relevant person
Source: gov.uk (2025-04-07)


Condition C is an anti-avoidance provision that applies where an individual gives property away (usually overseas) to someone who is not a relevant person (see RDRM33030 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm33030)).

It prevents a remittance basis user avoiding UK tax on foreign income and gains by giving money or other property to another person in circumstances where the property (or anything deriving from the property) is remitted to the UK in such a way that the individual, who made the gift, or any other relevant person, enjoys the gift.

The individual or a relevant person still enjoys, directly or indirectly, the gift (termed 'qualifying property' - see RDRM33260 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm33260)) in the UK because:
- the qualifying property is brought to, received or used in the UK and either the property is enjoyed, or as a result a benefit is enjoyed, by a relevant person
- the qualifying property is used as consideration for a service enjoyed in the UK by a relevant person
- the qualfying property is used outside the UK, directly or indirectly, and as a result a benefit is enjoyed in the UK by a relevant person
- the qualifying property is used outside the UK, directly or indirectly, in respect of a relevant debt
The remaining guidance pages in this section explain each of these terms in more detail.

To note, the enjoyment of a benefit as a result of qualifying property being brought to, received or used in the UK, and the enjoyment of a benefit as a result of qualifying property being used outside the UK, applies to remittances on or after 6 April 2025.

Key features of Condition C

The gift recipient (see RDRM33230 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm33230)) may include UK and non-UK residents, as well as individuals who are themselves former remittance basis users.

It is the enjoyment by a relevant person of the qualifying property that leads to remittance, not just the mere fact of its remittance to, or use in the UK, or its use in relation to services enjoyed in the UK.

Top of page (#Top)

Example

Pippa, a remittance basis user, makes a gift of some of her relevant foreign income totalling £20,000 (qualifying property) to her nephew Harry (a gift recipient) who lives in Canada. Harry decides to move to Wales to study at Cardiff University and uses £12,000 to pay his tuition fees, which he pays directly to the university’s Canadian bank account, and remits the remaining £8,000 to the UK in cash to pay for his living costs.

Harry, a gift recipient, has used qualifying property as consideration for a service in the UK (the university course) and has also directly brought qualifying property to the UK (the £8,000 cash). However, there is no enjoyment by a relevant person, so there is no taxable remittance under Condition C.

The ‘qualifying property’ that the gift recipient brings to the UK, or otherwise applies for the benefit or enjoyment of a relevant person, need not actually be the gifted property itself. It might not even be derived from the gifted property. Condition C may still apply if other property is applied for the benefit or enjoyment of a relevant person, and it is applied with reference to the gift, or by way of enablement or facilitation of the gift (refer to section 809N(7)(c) ITA 2007). In such cases the ‘other property’ is regarded as qualifying property.

Note: Condition C uses the term ‘enjoyed by’ a relevant person rather than ‘for the benefit of’ a relevant person (as used in Condition A). In most cases there is little practical difference between the two terms.