Legacy Remittance Basis Calculator
Before 6 April 2025, eligible non-domiciled UK residents could claim the remittance basis and generally pay UK tax on foreign income and gains only when remitted to the UK. The AbraTax Legacy Remittance Basis calculator compares a simplified income-only estimate under the arising basis and remittance basis for 2022/23 to 2024/25.
Who This Calculator Is For
This calculator is relevant for:
- Individuals reviewing a historic tax year in which the remittance basis was available
- People comparing the simplified Income Tax effect of the arising basis and remittance basis
- Anyone preparing information for a discussion with an international tax adviser
What You Need to Know
What Was the Remittance Basis?
Under the remittance basis, an eligible UK resident could elect to be taxed on UK income and gains in the usual way, while foreign income and gains were generally taxed only if remitted to the UK. Claiming could mean giving up the Personal Allowance and Capital Gains Tax annual exempt amount.
The Remittance Basis Charge
Long-term UK residents who claimed the remittance basis could be required to pay an annual charge:
- £30,000 for those resident in at least 7 of the previous 9 tax years
- £60,000 for those resident in at least 12 of the previous 14 tax years
Individuals resident for 15 or more of the previous 20 tax years were generally treated as deemed domiciled and could no longer use the remittance basis. Eligibility and charge rules are not determined by this calculator.
The End of the Remittance Basis
The remittance basis was abolished from 6 April 2025 for new income and gains. From that date, the arising basis generally applies to worldwide income and gains, although qualifying new UK residents may claim relief under the four-year FIG regime. Transitional rules, including the Temporary Repatriation Facility, can apply to eligible pre-6 April 2025 foreign income and gains.
The Temporary Repatriation Facility
The TRF offers a limited window for eligible former remittance basis users to designate pre-6 April 2025 foreign income and gains at 12% in 2025/26 and 2026/27, or 15% in 2027/28. This legacy calculator does not calculate the TRF; use the separate FIG and TRF calculator for a bounded TRF illustration.
How to Use the Legacy Remittance Basis Calculator
- Select a tax year from 2022/23 to 2024/25 and where you lived.
- Enter UK employment income.
- Enter total foreign savings and dividend income arising in the year, and the portion remitted to the UK.
- Select the remittance basis charge band to include, if applicable.
- The calculator will compare simplified Income Tax estimates under the arising and remittance bases.
Frequently Asked Questions
Does the end of the remittance basis affect income that arose before April 2025?
Pre-6 April 2025 foreign income and gains held offshore can remain subject to historic remittance rules if later remitted, unless eligible amounts are designated under the TRF. This is complex and specialist advice is recommended.
What is a remittance to the UK?
A remittance is broader than a transfer to a UK bank account. It can include using overseas funds or assets for the benefit of yourself or a connected person in the UK, such as paying a UK credit card bill from an overseas account or bringing a foreign asset into the UK.
Can I use the TRF for all pre-2025 offshore income?
No. Eligibility depends on how and when the income or gains arose and the historic tax treatment. This calculator does not determine TRF eligibility.
What records do I need to use this calculator?
You need the selected tax year, UK employment income, foreign savings and dividend income arising, the portions remitted, and the applicable remittance basis charge band. Wider records are likely to be required for an actual claim or professional review.
When is the TRF available?
The TRF is available for 2025/26, 2026/27, and 2027/28. This calculator does not determine TRF eligibility, designation requirements, or the treatment of historic offshore income and gains.
Limits of This Illustration
This calculator is a simplified income-only comparison. It does not model capital gains, foreign tax credit relief, Overseas Workday Relief, split years, trusts, nominated income, mixed funds, or every consequence of a remittance basis claim.
Relevant records can include foreign income, gains, and remittances by tax year. The calculator does not determine which records are required or reconstruct a historic position.
The calculator illustrates a bounded Income Tax comparison only. It does not determine eligibility, the correct tax treatment, or which basis should be used. HMRC or an appropriately qualified professional can explain how the rules apply to particular circumstances.
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