»Ê¹ÚÌåÓýapp

Where a taxpayer elects to pay tax on the remittance basis, the taxable amount of their ‘relevant foreign income� RDRM31140 is the amount remitted in that tax year ITTOIA05/s832.

This means that it is not possible for a taxpayer to deduct expenses (such as the cost of collection or legal costs) from, for example: foreign dividends, interest or royalty payments.

However, taxpayers who carry on a trade, profession or vocation wholly outside of the UK are able to claim the same deductions as are allowed to an individual who carries on a trade, profession or vocation in the United Kingdom - ITTOIA05/s832B. Refer to Business Income Manual BIM42100+ for information about allowable deductions.

Note 1 - Remittance basis users are taxable on the profits from overseas property income as relevant foreign income. »Ê¹ÚÌåÓýappy are taxable on the amount of property letting income (net of expenses) that they bring into the UK.

»Ê¹ÚÌåÓýapp ‘profitsâ€� of the overseas property business are determined in the usual way, and any taxable remittances will be ‘restrictedâ€� to the amount of profit.

Note 2 - Individuals can usually deduct 10% of the value of their overseas pensions, annuities and social security pensions, so that only 90% of the amount is taxable in the UK, under ITEPA03/s575 - refer to EIM75500.

With effect from 6 April 2017 this reduction was withdrawn, individuals are now taxable on 100% of their pensions etc.

However the 10% reduction did not apply to foreign pensions taxed as relevant foreign income. This meant that remittance basis users were taxable on the full amount of pension when ‘remitted� to the UK. Refer to RDRM33020 for the meaning of ‘remitted to the UK�.