Tax Update: 21 May 2007

1. Section 831 ITTOIA 2005

For tax years from 2005/06 onwards individuals who are not domiciled in the UK (or are not ordinarily UK resident) can choose on a year by year basis whether they wish to be assessed on their relevant foreign income ("RFI") on the arising basis or the remittance basis. A specific claim must be made if the taxpayer wishes to choose the remittance basis, but HMRC have confirmed that the claim will be treated as made if the Non Residence pages and page F2 of the Foreign Pages have been completed. Where no remittances have been made in the year in question, the claim can be indicated by an entry in the Additional Information box.

That leads onto the question of what action should be taken where a non-domiciled individual has income arising outside of the UK, but has no income arising within the UK and consequently has not received a self assessment return. If they do not file a specific claim under Section 831 ITTOIA 2005 will they be regarded as assessable