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CG25342 | Remittance basis: meaning of remitted to the United Kingdom: gifts of money and assets: ITA07/S809L(4)

From HM Revenue & Customs · Capital Gains Manual

Changes from 6 April 2025

The remittance basis has been abolished and new rules have been introduced from the 2025/26 tax year.

The latest guidance can be found in RFIG for Residence and RDRM for Domicile manuals.

Please note that cases which occur from 6 April 2025 onwards will be determined in accordance with the new rules.

Within the basic meaning of remittance, property must be brought to, received or used in the UK by the individual whose gain is under consideration or another relevant person (see CG25341). There may also be a remittance if the individual makes a gift of money or other property to someone who is not a relevant person and that money or other property is or derives from chargeable gains of the individual. In summary, if that money or property is then

  • brought to, or received or used in the United Kingdom and is enjoyed by a relevant person, or

  • used as consideration for a service that is enjoyed in the United Kingdom by a relevant person, or

  • used outside the United Kingdom in respect of a relevant debt

then the original gain accruing to the individual is remitted.

“Relevant debt” is defined at ITA07/S809L(7) and includes debts which relate to a property or service of the kind mentioned in condition A. See the Residence, Domicile & Remittances Manual for full details.

Example

Torvald claims the remittance basis in 2009-10; in that year he sells a property in Norway and uses the proceeds to buy a car which he gives to his business partner Stig who lives in Oslo. Stig exports the car to the UK and gives Torvald’s wife Helga the keys.

In terms of ITA07/S809L(4), the car is qualifying property because it was given by Torvald to Stig. Stig is a gift recipient because he is not a relevant person and he has received a gift of property (the car) that drives from Torvald’s chargeable gain. (For an explanation of these terms, see the Residence, Domicile & Remittances Manual). The car is brought to the UK and is enjoyed by a relevant person, Torvald’s wife. Torvald’s chargeable gain on the disposal of his property has therefore been remitted to the UK to the extent that it was used to buy the car. Note that it is the cost of the car, not its market value when it comes to be used in the UK, which fixes the upper limit of the remittance.)