FlagSageRemittance basis
Glossary term
The remittance basis is a way of taxing foreign income and gains only when they are brought into the country, used in the United Kingdom until 5 April 2025.
Under the UK remittance basis, some UK residents whose domicile was outside the UK paid UK tax only on the foreign income or gains they brought to the UK. HMRC guidance says claiming it meant losing the usual personal allowances and, after enough years of UK residence, paying an annual charge.
On 6 April 2025 the 4-year foreign income and gains regime replaced the remittance basis. HMRC says it is only for UK tax residents who are still within their first 4 years of UK tax residence after at least 10 years of non-UK tax residence. It is claimed on the Self Assessment return, and a claim also means losing some allowances.
Other countries may use rules with similar names that work differently. In banking, a remittance simply means a transfer of money, which is a different topic.
Not to be confused with
- Domicile. Domicile was the status that opened access to the UK remittance basis, not the remittance basis itself.
- Territorial taxation. A territorial system may leave foreign income untaxed even when it is brought into the country.
Sources
- Tax on foreign income: 'Non-domiciled' residentsOfficial guidance
- Check if you can claim the 4-year foreign income and gains regimeOfficial guidance
Related
- Countries covered
- General
- Sources
- 2 sources
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 8, 2026