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Retail remittance

10 March 2015
Issue: 4492 / Categories: Forum & Feedback , International , Residence & domicile

Are overseas gains remitted to the UK if a purchase is made in an airside shop?

My client is not domiciled in the UK but is UK resident and taxed on the remittance basis. In summer 2014 she flew out of the UK from Heathrow. Once she was through security and airside she purchased an expensive computer with her overseas credit card.

Airport airside shops are duty free and are outside the UK for VAT purposes. However does this count as a purchase in the UK for the purposes of calculating how much of her overseas gains she has remitted to the UK?

Query 18 547 – Draft

Reply from Steve Kesby

I don’t think that Draft is correct to say that airside duty free shops are outside the UK for VAT purposes. Duty free shops typically hide the VAT effects of transactions.

If the passenger (who is implicitly taking the goods with them to their destination) provides a boarding...

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