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A UK resident, but non-UK domiciled, taxpayer has used the remittance basis since 2008/09. On reflection, it appears the arising basis would have been more beneficial
We recently started acting for a client who is UK resident but non-UK domiciled. The client has been a remittance basis user and has paid the remittance basis charge since 2008/09.
On initial investigation it seems that the level of foreign income and gains are such that the client should not have made a claim to be taxed on the remittance basis. Instead the client would have paid considerably less tax on the arising basis during these tax years.
There is a four-year time limit from the end of the year of assessment to make a late claim for remittance basis to apply (TMA 1970 s 43(1)).
However are there any specific rules to reclaim the remittance basis charge paid in error in earlier tax years? Alternatively is making a claim for overpayment relief the only option available (see HMRC’s Self Assessment Claims Manual...
