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Alexandria has foreign income or gains, and uses the remittance basis

In 2013-14 Alexandria actually and identifiably remits

The ordering rules are triggered. The 鈥榬elevant year鈥� is 2013-14

Alexandria will be taxed on 拢220,000 of remittances as if she had actually remitted the following

Alexandria has foreign income or gains, and uses the remittance basis

as follows:

Year

Foreign chargeable gains (Para (d))

Relevant foreign income - Jersey (Para (c))

Relevant foreign earnings (Para (a))

Nomination

(from Jersey RFI)	听	听	听	听	听
听	2010-11	拢250,000	拢75,000	拢200,000	拢75,000 RFI
听	2011-12	拢300,000	拢80,000	拢120,000	拢75,000 RFI
听	2012-13	Nil	拢75,000	拢280,000	拢75,000 RFI
听	2013-14	拢130,000	拢80,000	拢150,000	拢75,000 RFI
听	Totals	拢680,000	拢310,000	拢750,000	-

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In 2013-2014 Alexandria actually and identifiably remits:

• 拢30,000 Jersey relevant foreign income she nominated in 2010-2011
• 拢140,000 foreign chargeable gains from 2011-2012, and
• 拢50,000 relevant foreign earnings from 2013-2014

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The ordering rules are triggered. The 鈥榬elevant year鈥� is 2013-14

Step 1

Identify nominated income and gains remitted in the relevant year - 拢30,000. Relevant amount 拢220,000.

Identify the remittance basis income and gains remitted in the relevant year - 拢190,000

Step 2

Find the total amount of the individual鈥檚 foreign income and gains (excluding those nominated) for the relevant tax year:

• Para (a) relevant foreign earnings (not subject to a foreign tax) 拢150,000
• Para (c) relevant foreign income (not subject to a foreign tax) 拢5,000
• Para (d) foreign chargeable gains (not subject to a foreign tax) 拢130,000

Step 3

Identify the earliest of paragraphs (a) to (h) above for which the amount determined in step 2 is not nil 鈥� para (a) 拢150,000

Step 4

Where the relevant amount is greater than the amount identified above, the relevant amount is reduced by the amount identified - 拢220,000 less 拢150,000 = 拢70,000

Step 5

If the relevant amount is not nil go back and repeat step 3. Take the reference to the first of paragraphs (a) to (h) as a reference to the earliest paragraph not previously taken into account under step 3.

Step 3

Repeated 鈥� para (c) 拢5,000

Step 4

Repeated 鈥� relevant amount reduced to 拢65,000

Step 5

In the order of preference listed above repeat steps 3 and 4

Step 3

Repeated 鈥� para (d) 拢130,000

Step 4

If the relevant amount is less than the amount identified, treat the whole of the remaining amount of the transfer as coming from that item of income or gain.

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Alexandria will be taxed on 拢220,000 of remittances as if she had actually remitted the following

Foreign chargeable gains

Year	Accruing in year	Actually remitted to UK	Treated as remitted
2010-2011	拢250,000	Nil	Nil
2011-2012	拢300,000	拢140,000	Nil
2012-2013	Nil	Nil	Nil
2013-2014	拢130,000	Nil	拢65,000

Relevant foreign income: Nominated

Year	Arising in year	Actually remitted to UK	Treated as remitted
2010-2011	拢75,000	拢30,000	Nil
2011-2012	拢75,000	Nil	Nil
2012-2013	拢75,000	Nil	Nil
2013-2014	拢75,000	Nil	Nil

Relevant foreign income: Not nominated

Year	Arising in year	Actually remitted to UK	Treated as remitted
2010-2011	Nil	Nil	Nil
2011-2012	拢5,000	Nil	Nil
2012-2013	Nil	Nil	Nil
2013-2014	拢5,000	Nil	拢5,000

Relevant foreign earnings

Year	Arising in year	Actually remitted to UK	Treated as remitted
2010-2011	拢200,000	Nil	Nil
2011-2012	拢120,000	Nil	Nil
2012-2013	拢280,000	Nil	Nil
2013-2014	拢150,000	拢50,000	拢150,000

If in future years she actually remits any of these monies, the ordering rules will treat her as having remitted something else instead (refer to RDRM35160 - Example 1 continuation).