RDRM33210 - Remittance Basis: Identifying Remittances: Condition C - Gift Recipients: Gift recipients - overview
Source: gov.uk (2025-04-07)


Condition C (section 809L(4) ITA 2007 is a stand-alone condition.

Condition C applies where:

an individual gives away money or other property (usually offshore)

the gift is made to someone who is not a ‘relevant person’ (see RDRM33030 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm33030))

the gifted money or property is, or derives from, the individual’s foreign income or chargeable gains

the individual or a relevant person still enjoys, directly or indirectly, the gift, or something derived from it (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 qualifying 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

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.

This kind of arrangement is sometimes referred to as ‘offshore alienation’, and Condition C ensures that foreign income or gains are still taxable if there is enjoyment by a relevant person, notwithstanding any alienation that the individual may have attempted to effect in respect of their foreign income and gains.

Where Condition C applies, the individual’s foreign income or chargeable gains are treated as remitted to the UK by the individual, and they are taxable on that remittance. In seeking to establish whether there is a remittance it may also be necessary to consider whether enjoyment of the property or service or an associated benefit by a relevant person is to be disregarded on the basis that the enjoyment is no more than incidental. Also refer to RDRM33270 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm33270).

Note 1: The rest of the examples in this chapter are designed simply to illustrate the basic principles. The examples refer to ‘remittances’ of identifiable forms of income but in practice you may also have to consider the mixed fund rules in order to identify what has been remitted - refer to RDRM35000 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm35000).

Note 2: Also the examples, and these Chapters use the phrase remittance of ‘foreign chargeable gains’, or refer to such gains being ‘remitted’. This phrase is used throughout as convenient shorthand. Foreign chargeable gains will usually be part of the proceeds from the sale of an asset, which will likely be a mixed fund. You will need to refer to this section together with RDRM35000 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm35000).

﻿