# UK taxes - remittance or arising basis?



## lsac (Jul 27, 2010)

Hi all,
we arrived in the UK last year. I've already read a lot about tax matters on official websites, but I'm still confused. I don't know how long we are going to stay here and we will most probably go back home one day. So my question is, can I choose the remittance basis now and then change to the arising basis in the future? 
Thanks


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## Dunedin (Aug 12, 2013)

*Remittance basis*

You can decide on a year by year basis whether you wish to use the remittance basis. There was a proposal to restrict this choice, but that proposal was dropped.

The remittance basis is not always the best choice, especially in the longer term. You lose your personal allowance and the annual capital gains tax allowance; the unremitted income is still liable to tax if it is remitted to the UK, which may involve consideration of the rules on mixed funds; there are implications for double tax relief, and so forth.


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## lsac (Jul 27, 2010)

The paragraph 9.15 of the following document explains that you don't loose the personal allowance and the annual capital gains tax allowance for less than £2000 unremitted foreign income: https://www.gov.uk/government/uploa...528018/RDR1-residence-domicile-remittance.pdf

" 9.15 If your unremitted foreign income and gains arising or accruing in the tax year are less than £2,000, you can use the remittance basis without having to complete a Self Assessment tax return. In this case you will:
- be automatically taxed on the remittance basis (unless the rules at paragraph 9.11 apply)
- retain your entitlement to UK Personal Tax Allowances and to the annual exempt amount for Capital Gains Tax
- not have to pay the Remittance Basis Charge (RBC) if you are a long- term UK resident "

As it is the case, I understand that I'm taxed automatically on the remittance basis and I don't loose the personal allowance and the annual capital gains tax allowance.

In the text, they say income and gains. Does it include the interests from bank accounts?


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