RDRM34380 | Remittance Basis: Exemptions: Business investment relief: Claiming business investment relief

Claims for business investment relief (BIR) must be made on the Self Assessment tax return. The claim needs to be made on or before the first anniversary of 31 January following the tax year in which the investment was made.

Although it is no longer possible to use the remittance basis from 6 April 2025, former remittance basis users may have pre-6 April 2025 foreign income and gains which they can use to make qualifying investments on or after 6 April 2025. This is possible because an individual is not required to claim the remittance basis in the same year they make a BIR claim.

However, from 6 April 2028 it will no longer be possible to claim BIR. Although existing qualifying investments within UK businesses will continue to benefit from BIR after this date, there can be no new qualifying investments on or after 6 April 2028.

Example 1

Jake, a former remittance basis user, transferred his £500,000 foreign income and gains to a UK company on 6 April 2025 (tax year 2025-26) to make a qualifying investment. The first 31 January after that tax year is 31 January 2027 so the first anniversary of that is 31 January 2028.

Jake will most likely make the BIR claim when he submits his Self Assessment tax return for 2025-26 by the filing date of 31 January 2027.

Example 2

Fu, a former remittance basis user, has foreign interest in an offshore bank account, which he earned in 2009-10. He decides to use £15,000 of this to make a qualifying investment and brings the money to the UK on 14 February 2026 and makes the investment on 17 March 2026, within the 45-day period allowed.

Fu must make his claim for BIR by 31 January 2028 via his Self Assessment tax return. If he fails to make a claim, Fu will be considered to have remitted the £15,000 foreign interest to the UK on 14 February 2026.

Advance assurance procedure for qualifying investments

An individual intending making a business investment before 6 April 2028 can ask HMRC for their opinion on whether a proposed investment can be treated as a qualifying investment under the BIR provisions. The former remittance basis user, or a person authorised to act on their behalf, may make this request. Where the investment is made by someone other than the former remittance basis user, the former remittance basis user will need to make the request.

Refer to the guidance How to apply for clearance or approval of a transaction from HMRC for details on how to apply for advance assurance.