RDRM31501 | Remittance Basis: Introduction to the Remittance Basis: Transitional Provisions: Relevant foreign income and offshore loans - Example 1

Before 11 March 2008 Jennifer draws down £100,000 from a mortgage loan with a non-UK bank that is secured on a residential property in the UK, with interest payments made out of relevant foreign income. On 10 March 2008 she draws down a further amount of £21,000 from this mortgage (still secured on the UK property) to fund some home repairs.

Although the full £121,000 has been lent before 12 March 2008, only £100,000 relates to the acquisition on the interest in the property, so it is only the interest payments in relation to the £100,000 draw-down of the loan that are not treated as a remittance.