HMRC is writing to taxpayers who it thinks should have included the remittance basis charge in their tax return for 2023/24 and failed to do so. HMRC undertook a similar campaign in September 2024 in relation to tax returns for 2022/23.  

The letter is not an enquiry notice. It asks the taxpayer to check their position and provides references to further information, including to HMRC’s guidance on the remittance basis of taxation in RDR1. Agents will receive a copy of the letter.   

The remittance basis charge 

For 2025/26 onwards, the rules for non-doms, including the remittance basis charge, are abolished and replaced with a new regime for foreign income and gains. This is explained in detail in an earlier article.  

Prior to April 2025, a non-dom who was UK resident could choose to pay UK tax on their foreign income and gains as they received them (the arising basis), or when they brought the funds to the UK (the remittance basis). Where the remittance basis was used, the taxpayer may have needed to pay an annual charge of: 

• £30,000, where they’d been UK tax resident for seven of the nine previous tax years (Box 32 on the SA109 should be ticked); or
• £60,000, where they’d been resident for 12 of the 14 previous tax years (Box 31).  

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

The letter is being sent to taxpayers where HMRC’s records indicate that, for 2023/24, they had been UK tax resident for at least seven of the previous nine years. 

Action to take 

If the person finds that they have made an error, they should amend their tax return for 2023/24 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. 

Where the person’s unremitted foreign income and capital gains for 2023/24 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 (SA109). 

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 tax return does contain an error, the taxpayer may have to pay additional tax and the remittance basis charge, plus interest. If HMRC charges an inaccuracy penalty, it will treat any disclosure made by the taxpayer as prompted.   

Further information 

• ICAEW Economy explainer: what is the non-dom regime?