RDRM32230 - Remittance Basis: Accessing the remittance basis: Long Term UK Residents: Counting years of UK residence - Minors
The remittance basis charge is only payable by long-term residents aged 18 of over.
However tax years in which the individual is under 18 are counted in determining years of residence for the 鈥榮even out of nine鈥� rule.
Example
Pranav was born on 23 October 1991. He came to the UK as a school boarder in August 2001 (tax year 2001-2002). He is domiciled outside the UK. He has stayed in education in the UK for every tax year since.
| Year | Status |
|---|---|
| 1999-2000 | Not Resident |
| 2000-2001 | Not Resident |
| 2001-2002 | Resident |
| 2002-2003 | Resident |
| 2003-2004 | Resident |
| 2004-2005 | Resident |
| 2005-2006 | Resident |
| 2006-2007 | Resident |
| 2007-2008 | Resident |
| 2008-2009 | Resident |
| 2009-2010 | Resident |
In 2008-2009 Pranav has foreign income of 拢300,000 and he claims to use the remittance basis in that year. He is a long-term resident in the UK as he has been UK resident for eight years, but as he is under 18 he may use the remittance basis in 2008-2009 without paying the remittance basis charge.
In October 2009 (tax year 2009-2010) Pranav turns 18. He has foreign income of 拢400,000. If he wishes to claim the remittance basis for that tax year he will be liable to the remittance basis charge.