HMRC is writing to taxpayers who it thinks should have included the remittance basis charge in their tax return for 2022/23 but failed to do so. The letter is not an enquiry notice. The taxpayer is asked to check their position by referring to the guidance included with the letter and the detailed notes published on gov.uk. HMRC also suggests that the person may want to consider getting advice from an agent.  

If the person finds that they have made an error, they should amend their tax return for 2022/23 within 60 days of the date of the letter and either: 

• pay the remittance basis charge, making sure that all remittances reported are complete and correct and to report their nominated income or gains; or 
• pay tax on the arising basis and declare their worldwide income and gains. 

It should be noted that where the person’s unremitted foreign income and capital gains for 2022/23 were under £2,000, the remittance basis charge is not payable. In this case, the person should tick box 29 on the residence and domicile pages of the tax return. 

If the person has made errors in tax returns for earlier years, they should disclose this to HMRC. 

No action is required where the person believes that their tax return is correct. 

If HMRC finds that the person’s tax return is incorrect, they may have to pay additional tax and the remittance basis charge, plus interest and possible penalties.  

What is the remittance basis charge? 

A non-dom who is UK resident can choose to pay UK tax on their foreign income and gains as they receive them (the arising basis), or when they bring the funds to the UK (the remittance basis). They may need to pay an annual charge to use the remittance basis. This is £30,000 where they have been UK tax resident for seven of the nine previous tax years, and £60,000 once they’ve been resident for 12 of the 14 previous tax years.  

Years where the individual is UK resident but has claimed split-year treatment, or is dual resident, count as full years of residency for the above tests. 

Template letters: 

• Taxpayer is UK tax resident for seven of the nine previous tax years 
• Taxpayer is UK tax resident for 12 of the 14 previous tax years