Schedule 9 | Income tax and capital gains tax: remittance basis and domicile

Part 1Remittance basis

(1)Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows.

(2)In section 809B (claim for remittance basis to apply), in subsection (1)—

(a)in the words before paragraph (a) omit “the individual”;

(b)before that paragraph insert—

(za)the tax year is the tax year 2024-25 or an earlier tax year,

;

(c)in each of paragraphs (a), (b) and (c), at the beginning insert “the individual”.

(3)In section 809C (claim for remittance basis by long-term UK resident), in subsection (1)—

(a)in the words before paragraph (a) omit “the individual”;

(b)before that paragraph insert—

(za)the tax year is the tax year 2024-25 or an earlier tax year,

;

(c)in each of paragraphs (a) and (b), at the beginning insert “the individual”.

(4)In section 809D (application of remittance basis where income and gains under £2000) in subsection (1), before paragraph (a) insert—

(za)the tax year is the tax year 2024-25 or an earlier tax year,

.

(5)In section 809E (application of remittance basis without claim: other cases) in subsection (1), before paragraph (a) insert—

(za)the tax year is the tax year 2024-25 or an earlier tax year,

.

(6)In consequence of the amendments made by sub-paragraphs (2) to (5), in section 809A—

(a)for “are” substitute “were”;

(b)after “Kingdom” insert “in tax years before tax year 2025-26”.

(1)TCGA 1992 is amended as follows.

(2)In section 1A (territorial scope), in subsection (2)(a), for “applies” substitute “applied”.

(3)In section 1K (annual exempt amount), omit subsection (3).

(4)In the italic heading before section 3D, for “Non-UK domiciled individuals” substitute “Individuals who were non-UK domiciled”.

(5)In section 3D—

(a)for the heading, substitute “Individuals who were non-UK domiciled”;

(b)in subsection (1)—

(i)for “a tax year” substitute “tax year 2024-25 or an earlier tax year”;

(ii)for “is”, in each place it occurs, substitute “was”.

(6)Section 16ZA (losses: non-UK domiciled individuals) is omitted.

(7)In Schedule 1 (UK resident individuals not domiciled in UK)—

(a)in the heading, for “not domiciled in the UK” substitute “to whom the remittance basis applied”;

(b)in paragraph 1(1) for “applies” , in the second place it occurs, substitute “applied”;^F1

(c)omit paragraphs 2, 3 and 4.

(1)ITEPA 2003 (employment income: charge to tax) is amended as follows.

(2)In section 6 (nature of charge to tax on employment income), in subsection (3)—

(a)in paragraph (a), omit “and domicile”;

(b)in paragraph (aa), for “applies” substitute “applied”.

(3)In section 20 (taxable earnings under this Chapter), for subsection (1) substitute—

(1)This Chapter contains provision for determining how much of the following are taxable earnings from an employment in a tax year—

(a)general earnings that are for a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee (being a tax year before tax year 2025-26), and

(b)general earnings that are for a tax year for which the employee is non-UK resident.

(4)In section 22 (chargeable overseas earnings for year when remittance basis applies and employee outside section 26)—

(a)in the heading and in subsection (1)(a), for “applies” substitute “applied”;

(b)in subsection (1)(b), for “does not” substitute “did not”.

(5)In section 23 (calculation of “chargeable overseas earnings”), in subsection (2)—

(a)in paragraph (a), for “applies” substitute “applied”;

(b)in paragraph (aa) for “does not” substitute “did not”;

(c)in paragraph (b) for “is” substitute “was”;

(d)in paragraph (c) for “are” substitute “were”.

(6)In the italic heading before section 25, for “meet” substitute “met”.

(7)In section 26 (foreign earnings for year when remittance basis applies and employee meets section 26A requirement)—

(a)in the heading, for “applies and employee meets” substitute “applied and employee met”;

(b)in subsection (1), in the opening words—

(i)for “applies”, in the second place it appears, substitute “applied”;

(ii)for “meets” substitute “met”.

(8)In section 41F (taxable specific income: internationally mobile employee etc), in subsection (2)(a), for “applies” substitute “applied”.

(9)In section 41H (section 41F: chargeable and unchargeable foreign securities income)—

(a)in subsection (4)—

(i)in paragraph (a), for “applies” substitute “applied”;

(ii)in paragraph (b) for “does not” substitute “did not”;

(iii)in paragraph (c) for “is” substitute “was”;

(iv)in paragraph (d) for “are” substitute “were”;

(b)in subsection (7)—

(i)in paragraph (a), for “applies” substitute “applied”;

(ii)in paragraph (b) for “meets” substitute “met”;

(iii)in paragraph (c) for “are” substitute “were”.

(10)In section 271 (limited exemption of removal benefits and expenses: general)—

(a)in subsections (2)(a) and (2)(b), for “applies” substitute “applied”;

(b)in subsection (2)(b), for “meets” substitute “met”.

(11)In section 554Z9 (remittance basis: A does not meet section 26A requirement)—

(a)in the heading, for “does not” substitute “did not”;

(b)in subsection (1)—

(i)in paragraph (b) for “applies” substitute “applied”;

(ii)in paragraph (c) for “does not” substitute “did not”;

(iii)in paragraph (d) for “is” substitute “was”;

(iv)in paragraph (e), for “are” substitute “were”.

(12)In section 554Z10 (remittance basis: A meets section 26A requirement)—

(a)in the heading, for “meets” substitute “met”;

(b)in subsection (1)(b), for “applies” substitute “applied”;

(c)in subsection (1)(c), for “meets” substitute “met”.

(13)In section 576A (temporary non-residents), in subsection (5), for “applies” substitute “applied”.

(14)In section 698 (PAYE: special charges on employment-related securities), in subsection (8), for “remittance basis” substitute “internationally mobile employees”.

(15)In section 700 (PAYE: gains from securities options), in subsection (7), for “remittance basis” substitute “internationally mobile employees”.

(16)In section 700A (employment-related securities etc: remittance basis), in the heading, for “remittance basis” substitute “internationally mobile employees”.

(4)In section 832 of ITTOIA 2005 (relevant foreign income charge on remittance basis), in subsection (1)—

(a)for “applies”, in the second place it appears, substitute” applied”;

(b)after “that year” insert “(being a tax year before tax year 2025-26)”.

(1)ITA 2007 is amended as follows.

(2)Section 809L (meaning of “remitted to the United Kingdom”) is amended in accordance with sub-paragraphs to (3) to (8).

(3)In subsection (2)—

(a)omit the “or” at the end of paragraph (a);

(b)at the end of paragraph (b) insert

(c)money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person.

(4)In subsection (4)—

(a)in paragraph (a), for “is enjoyed by a relevant person” substitute

(i)the property is enjoyed by a relevant person, or

(ii)as a result, a benefit is enjoyed by a relevant person.

;

(b)after paragraph (b) (but before the “or” at the end) insert—

(ba)is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,

.

(5)In subsection (5)—

(a)in paragraph (a), for “is enjoyed by a relevant person” substitute

(i)the property is enjoyed by a relevant person, or

(ii)as a result, a benefit is enjoyed by a relevant person.

;

(b)after paragraph (b) (but before the “or” at the end) insert—

(ba)is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person,

.

(6)In subsection (6)—

(a)for “or (b)”, in each place it occurs, substitute “, (b) or (ba)”;

(b)after “property”, in the second place it occurs, insert “, benefit”.

(7)At the end of subsection (9) insert “and cases where the property is used to secure the debt.”

(8)After subsection (9) insert—

(9A)For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes—

(a)sending, or otherwise effecting a transfer of, the property to the United Kingdom, and

(b)in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom.

(9B)Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992.

(9C)But subsection (9B) does not apply where the intangible property is a debt other than a judgment debt.

(9)In section 809N (section 809L: gift recipients, qualifying property and enjoyment)—

(a)in subsection (7)(c), after “(b)” insert “, (ba)”;

(b)in subsection (9)—

(i)in the opening words, after “property” insert “, a benefit”;

(ii)in paragraph (a), at the beginning insert “in the case of enjoyment of property or a service,”;

(iii)after paragraph (a) insert—

(aa)in the case of enjoyment of a benefit—

(i)if the qualifying property being dealt with as mentioned in section 809L(4)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and

(ii)the enjoyment by all relevant persons is no more than negligible,

;

(iv)in paragraph (c), after “property” insert “, benefit”.

(10)In section 809O (section 809L: dealings where there is a connected operation)—

(a)in each of subsections (2), (3), (4) and (5) after “(b)” insert “, (ba)”;

(b)in subsection (6)—

(i)in the opening words, after “property” insert “, a benefit”;

(ii)in paragraph (a), at the beginning insert “in the case of enjoyment of property or a service,”;

(iii)after paragraph (a) insert—

(aa)in the case of enjoyment of a benefit—

(i)if the property being dealt with as mentioned in section 809L(5)(a) or (ba) results in a benefit being enjoyed by relevant persons and persons who are not relevant persons, and

(ii)the enjoyment by all relevant persons is no more than negligible,

;

(iv)in paragraph (c), after “property” insert “, benefit”.

(11)In section 809P (section 809L: amount remitted)—

(a)in subsections (6) and (8), for “or (b)” substitute “, (b) or (ba)”;

(b)in subsection (12), after “previously remitted”, in each place it occurs, insert “that has been charged to income tax or capital gains tax”.

(1)This paragraph applies where—

(a)income or chargeable gains of an individual have been remitted to the United Kingdom during a period that exceeds 5 years—

(i)that ends before 6 April 2024, and

(ii)in which there was no period for which the individual was UK resident, and

(b)after the end of that period, but before 6 April 2025—

(i)the same, or part of the same, income or chargeable gains (“the repeated remitted amount”) were again remitted to the United Kingdom, and

(ii)a relevant charge has arisen in relation to that remittance.

(2)A “relevant charge” in relation to a remittance means—

(a)income tax becoming chargeable on that remittance, or

(b)a gain accruing under paragraph 1(2) of Schedule 1 to TCGA 1992 on that remittance.

(3)Any relevant charge that has arisen on the first occasion on which the repeated remitted amount is remitted in circumstances falling within sub-paragraph (1)(b) is to be treated as never having arisen.

(4)But a remittance that is not charged to income tax or capital gains tax as a result of sub-paragraph (3) is to be treated as if it were charged to income tax or capital gains tax (as the case may be) for the purposes of section 809P(12) of ITA 2007.

(5)This paragraph is to be treated as never having applied where—

(a)for either, or each, of the tax years 2024-25 and 2025-26, the individual is not UK resident, or

(b)either, or each, of those tax years is a split year as respects the individual.

(6)References in this paragraph to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).

Part 2Removal of domicile (primary legislation)

(1)Chapter 1A of Part 14 of ITA 2007 (exemption for persons not domiciled in United Kingdom) is repealed.

(8)In section 55C of ITA 2007 (election to reduce personal allowance), in subsection (3)(b), for “domiciled in the United Kingdom” substitute “not a qualifying new resident”.

(1)Section 834 of ITA 2007 (residence of personal representatives) is amended as follows.

(2)In subsection (3), for “domiciled in the United Kingdom” substitute “a long-term UK resident within the meaning of IHTA 1984”.

(3)Omit subsection (5).

(10)In section 62 of TCGA 1992 (residence of personal representatives), in subsection (3), for the words from “having” to the end substitute “UK resident if the deceased was UK resident or a long-term UK resident within the meaning of IHTA 1984 at the date of death.”

(1)Section 476 of ITA 2007 (residence of trustees: how to work out if settlor meets condition C) is amended as follows.

(2)In subsections (2)(b) and (3)(b), omit “or domiciled in the United Kingdom”.

(3)After subsection (3) insert—

(3ZA)In relation to a settlement—

(a)that arose before 6 April 2025 on S’s death, or

(b)that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,

subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted “or domiciled in the United Kingdom”.

(4)In subsection (3A), for “subsections (2)(b) and (3)(b)” substitute “subsection (3ZA)”.

(5)In subsection (4)(c), for “subsection (2) or (3) or this subsection” substitute “this section”.

(1)Section 69 of TCGA 1992 (trustees of settlements) is amended as follows.

(2)In subsection (2B)(c), omit “or domiciled”.

(3)After subsection (2C) insert—

(2CA)In relation to a settlement—

(a)that arose before 6 April 2025 on the settlor’s death, or

(b)that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,

subsection (2B)(c) has effect as if after “resident” there were inserted “or domiciled”.

(4)In subsection (2F), for “(2B)(c)” substitute “(2CA)”.

(1)In the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), regulation 42 (application of Part 5) is amended as follows.

(2)In paragraph (2)(d)(ii), omit “and domiciled”.

(3)After paragraph (2) insert—

(2A)In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted “and domiciled”.

(14)In sections 56, 61G and 61R of ITEPA 2003 (chargeability to tax in respect of deemed employment payment), omit subsections (4) and (5).

(1)Part 4 of FA 2004 (pensions schemes etc.) is amended as follows.

(2)In Chapter 3 (payments by registered pension schemes), in section 185G, in subsection (3)(a) omit “and domiciled”.

(3)In the following provisions of Chapter 5 (registered pension schemes: tax charges) and Chapter 6 (schemes that are not registered pension schemes) omit “or domiciled”—

(a)section 205(3);

(b)section 206(3);

(c)section 207(3);

(d)section 208(4);

(e)section 209(5);

(f)section 237A(2);

(g)section 237B(8);

(h)section 239(4);

(i)section 242(3);

(j)section 244J(6).

(16)In section 7 of F(No.2)A 2005 (social security pension lump sum), in subsection (3) omit “or domiciled”.

(17)In FA 1996 omit section 200 (domicile for tax purposes of overseas electors).

(18)In ITA 2007 omit section 835B (domicile for income tax purposes of overseas electors).

(1)Section 275 of TCGA 1992 (location of assets) is amended as follows.

(2)In subsection (1), omit paragraph (l).

(3)Omit subsection (3A).

(1)Schedule 5A to TCGA 1992 (settlements with foreign element: information) is amended in accordance with sub-paragraphs (2) and (3).

(2)In paragraph 3—

(a)in sub-paragraph (3) omit “is domiciled in the United Kingdom and”;

(b)at the end of sub-paragraph (3) insert “and is not a qualifying new resident within the meaning of Schedule D1”;

(c)omit sub-paragraph (3A).

(3)In paragraph 4—

(a)for sub-paragraph (2)(b) substitute—

(b)where that time was before 6 April 2025, did not fulfil the condition mentioned in sub-paragraph (3) below at that time or at any time before 6 April 2025,

(ba)where that time was on or after 6 April 2025, does not fulfil the condition mentioned in sub-paragraph (3A) below at that time,

;

(b)in sub-paragraph (2)(c)—

(i)for “that condition” substitute “the condition mentioned in sub-paragraph (3A) below”;

(ii)for “the commencement day” substitute “6 April 2025”;

(c)in the closing words of sub-paragraph (2), for “the relevant day” substitute “31 January after the end of the tax year in which the relevant day falls”;

(d)after sub-paragraph (3) insert—

(3A)The condition is that the person concerned is resident in the United Kingdom and is not a qualifying new resident within the meaning of Schedule D1.

(4)Sub-paragraph (5) applies where a settlor fulfils the condition in paragraph 4(3A) of Schedule 5A to TCGA 1992 (settlements with foreign element: information) on 6 April 2025.

(5)For the purposes of paragraph 4(2)(c) of that Schedule, the settlor is to be treated as first fulfilling that condition on 6 April 2025.

(1)FA 2005 is amended as follows.

(2)In section 28 (vulnerable person’s liability: VQTI), in subsection (4)—

(a)at the end of paragraph (a) insert “and”;

(b)omit paragraph (c) and the “and” before it.

(3)In Schedule 1 (non-UK resident vulnerable person), in paragraph 7(1)(a) omit “and domiciled”.

(22)In section 459 of ITTOIA 2005 (application of transfer of assets abroad legislation to disposals of deeply discounted securities), in subsection (1) omit “or domiciled”.

(1)ITA 2007 is amended as follows.

(2)In section 667 (trustees’ accrued income profits treated as settlement income), in subsection (2)—

(a)in paragraph (a) omit “or domiciled outside the United Kingdom”;

(b)in paragraph (b) omit “or domiciled in the United Kingdom”.

(3)In section 680 (interest on securities involving accrued income losses: foreign trustees), in subsection (1)—

(a)in paragraph (a) omit “or domiciled outside the United Kingdom”;

(b)in paragraph (d) omit “, or domiciled in the United Kingdom,”.

(1)In section 22 of F(No.2)A 1931 (Treasury power to issue securities with a FOTRA condition), in subsection (1)(b) for “neither domiciled nor” substitute “not”.

(2)In section 154 of FA 1996 (FOTRA securities), omit subsection (1).

(3)Any security issued with a FOTRA domicile condition is treated in relation to times on or after 6 April 2025 as if—

(a)it were a security issued with the post-1996 Act FOTRA conditions (and with no other FOTRA condition), and

(b)the post-1996 Act FOTRA conditions had been authorised in relation to the issue of that security by virtue of section 22 of F(No.2)A 1931.

(4)In sub-paragraph (3)—

“a FOTRA condition” means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;

“a FOTRA domicile condition”, in relation to a security, means a FOTRA condition requiring the security to be in the beneficial ownership of persons who are not domiciled in the United Kingdom for an exemption from taxation to apply;

“the post-1996 Act FOTRA conditions” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.

(25)In section 614 of the Income and Corporation Taxes Act 1988 (exemptions and reliefs in respect of income from investments etc. of certain pension schemes), in subsections (4) and (5), omit “not domiciled and”.

Part 3Removal of domicile (secondary legislation)

(1)In the Appendix to Schedule 1 to the Education (Grants) (Music, Ballet and Choir Schools) (England) Regulations 2001 (S.I. 2001/2743) (aided pupil scheme: computation of income), in paragraph 2, in sub-paragraph (a) omit “, ordinarily resident or domiciled”.

(2)In Part 2 of Schedule 2 to the Education (Student Support) (European University Institute) Regulations 2010 (S.I. 2010/447) (calculation of contribution), in paragraph 4(5)(a), omit “or domiciled” in the first place it appears.

(3)The Education (Student Support) Regulations 2011 (S.I. 2011/1986) are amended in accordance with sub-paragraphs (4) and (5).

(4)In Schedule 4 (financial assessment)—

(a)in paragraph 5(7)(a)—

(i)omit “or domiciled” in the first place it appears;

(ii)omit “so”;

(b)in paragraph 7(7)(a)—

(i)omit “or domiciled” in the first place it appears;

(ii)omit “so”.

(5)In Schedule 6 (assessment of eligible part-time student’s household income)—

(a)in paragraph 5(6)(a)—

(i)omit “or domiciled” in the first place it appears;

(ii)omit “so”;

(b)in paragraph 7(7)(a)—

(i)omit “or domiciled” in the first place it appears;The

(ii)omit “so”;

(27)In the Income Tax (Digital Requirements) Regulations 2021 (S.I. 2021/1076) omit regulation 26.