RDRM32220 - Remittance Basis: Accessing the remittance basis: Long Term UK Residents: Counting years of UK residence (seven out of nine) - ITA07/s809
Source: gov.uk (2025-04-07)


From 6 April 2025 it is not possible to use the remittance basis of taxation, however, any foreign income or gains that have arisen to a former remittance basis user prior to this date will continue to be taxed at the usual tax rates if they are remitted to the UK on or after 6 April 2025, subject to any amounts designated under the temporary repatriation facility (TRF) – see RDRM71000 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm71000).

The guidance in this section only applies to tax years up to and including the 2024-25 tax year and remains for reference purposes only.

Long-term UK residents aged 18 and over who claim the remittance basis under ITA07/s809B are liable to pay the remittance basis charge (RBC). For these purposes, a ‘long-term resident’ is an individual who has been resident in the UK in at least seven out of the previous nine tax years.

When determining an individual's residence status, the correct guidance and legislation needs to be applied. So, from 6 April 2013 the Statutory Residence Test (SRT) guidance and legislation must be used. For years before this, the common law principles relating to residence apply and the relevant HMRC published guidance should be used (i.e. from 6 April 2009, the HMRC 6 and for years prior to this IR20).

From tax year 2012-2013, a second level of RBC was introduced, for individuals whose residence in the UK continues beyond seven years and amounts to at least 12 or more of the previous 14 tax years, although the principle for determining what is a year of residence is the same.

From tax year 2015-2016 a third level of remittance basis charge was introduced, for individuals who had been UK resident for at least 17 or more of the previous 20 tax years. As with the 2 lower charges the principles for determining what is a year of residence is the same. However, following the introduction of deemed domicile from 6 April 2017 this third level charge became obsolete, as an individual will be deemed domiciled in the UK if they have been UK resident in 15 of the previous 20 tax years.

There are certain exceptions whereby long-term residents may use the remittance basis without paying the RBC (refer to RDRM32100 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm32100) Exceptions to the claim requirements).

When calculating the remittance basis charge, the following count as years of residence in the UK:
- The year an individual becomes UK resident under the SRT or pre- SRT rules for the relevant tax years
- The years an individual starts to live or work abroad if the individual is UK resident under the SRT or ceases to be UK resident under the pre-SRT rules for the relevant tax year
- Years in which split year treatment is available under the SRT or, for pre-SRT years, under ESC A11
- Years in which the individual is dual resident regardless of where the Double Taxation Agreement holds them as treaty resident.
Prior to 6 April 2013, an individual could claim the remittance basis if they were either ordinarily resident in the UK or were not domiciled here. The concept of ordinary residence has now been abolished for most direct tax purposes and the remittance basis can only be claimed by individuals based on their domicile status.

Example

Ralph, a non-dom, is resident in the UK for the tax year 2019-2020.
- Ralph came to the UK on 10 May 2006 (2006-2007 tax year)
- He left to live in Spain on 2 January 2008 (2007-2008 tax year)
- He returned to the UK on 12 October 2010 (2010-2011 tax year)
- He left to work in the Republic of Ireland on 29 April 2012 (2012-2013 tax year)
- He then returned to the UK on 16 May 2014 (2014-2015 tax year) and has been resident here since
Ralph is tax resident in the UK for the current tax year (2019-2020). He has chargeable overseas earnings of £150,000 in that year, paid into his Spanish bank account and he does not remit anything. For the last 14 tax years he has been resident/not resident as follows:

Count

Year

Residence status

1

2005-2006

Non-resident as did not come to the UK until 10 May 2006

2

2006-2007

Resident

3

2007-2008

Resident (the year he went to Spain)

4

2008-2009

Non-resident

5

2009-2010

Non-resident

6

2010-2011

Resident

7

2011-2012

Resident

8

2012-2013

Resident (the year he went to Ireland)

9

2013-2014

Non-resident

10

2014-2015

Resident

11

2015-2016

Resident

12

2016-2017

Resident

13

2017-2018

Resident

14

2018-2019

Resident

Having calculated the number of years he has been resident in the UK Ralph determines that in 2019-2020 he has not been resident in 12 out of the previous 14 tax years; so, if he claims the remittance basis in 2019-2020, he will not be liable to the higher remittance basis charge of £60,000. He has however been resident in 7 of the previous 9 tax years, so would have to pay the lower remittance basis charge of £30,000.