Individuals Not Domiciled in the UK

HMRC has issued the following note concerning individuals who are not domiciled in the UK (or are not ordinarily UK resident) and what they need to consider.

SECTION 831 ITTOIA 2005
For tax years from 2005/06 onwards individuals who are not domiciled in the UK (or are not ordinarily UK resident) can choose on a year by year basis whether they wish to be assessed on their relevant foreign income (RFI) on the arising basis or the remittance basis. A specific claim must be made if the taxpayer wishes to choose the remittance basis, but HMRC has confirmed that the claim will be treated as made if the Non Residence pages and page F2 of the Foreign Pages have been completed. Where no remittances have been made in the year in question, the claim can be indicated by an entry in the Additional Information box.

That leads onto the question of what action should be taken where a non-domiciled individual has income arising outside of the UK, but has no income arising within the UK and consequently has not received a self assessment return. If they do not file a specific claim under Section 831 ITTOIA 2005 will they be regarded as assessable on the whole of the income arising?

HMRC has confirmed that in these circumstances, the individual will need to consider notifying chargeability under Section 7 TMA 1970. However, if the individual is able to make a claim under Section 831 and there have been no remittances of RFI then there will be no need to notify. If HMRC subsequently enquire into the individual's affairs, there will only be an issue if the individual's personal circumstances do not entitle them to claim the remittance basis or it transpires that there were remittances of RFI that had not been notified.


Section 831(1) says "A person may make a claim for a tax year for the person's relevant foreign income to be charged for that year in accordance with Section 832". No deadline is stated for submitting a claim and consequently it appears that the claim can be made at any time up to the fifth anniversary of 31 January following the tax year to which it relates (Section 43(1) TMA 1970).

Source ACCA