RDRM31210 - Remittance Basis: Introduction to the Remittance Basis: Comparisons with pre-April 2008 regime: Key differences between the rules before and after 6 April 2008
Prior to Finance Act 2008 there was very little legislation governing the area of remittances, and the meaning of ‘remitted’ to the UK. HMRC’s practice and approach was derived largely from case law. This changed when Finance Act 2008 introduced statutory definitions and rules which introduced new rules for claiming the remittance basis and provides greater definition on the issue of remittances. The previous case law is now of limited relevance.
The new rules and changes apply for tax years 2008-2009 onwards. This is subject to certain transitional provisions RDRM31400 covering foreign income and gains that arose or accrued and events that happened before that.
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.
The purpose of this section is to outline the differences between the old and new regimes to assist with the working of pre-2008-2009 cases and remains for reference purposes only.
There is no single manual dealing with the remittance basis for years prior to 2008-2009; instead, guidance on the taxation of foreign income and chargeable gains is located in the relevant manuals dealing with specific types of income, for example the Employment Income Manual (EIM) or the Savings and Investment Manual (SAIM), or gains, such as the Capital Gains Manual (CG). There is also some useful information in the International Manual (INTM).