Test your understanding: answers
(1). Wren has been UK tax resident since 1 January 1995. This means she has been UK tax resident for 15 of the previous 20 tax years and is therefore deemed domiciled in the UK. As a result, she is not entitled to claim the remittance basis.
(2). The remittance basis is available to Robin because he is tax resident but neither domiciled nor deemed domiciled in the UK.
Robin’s unremitted overseas income and gains exceed £2,000, such that the remittance basis will not be automatic but will require a claim.
Robin will have to pay a remittance basis charge of £30,000 (if he has been UK resident for seven of the previous nine years) or £60,000 (if he has been UK resident for 12 of the previous 14 years).
