Readers’ forum: Remittance basis on offshore account of UK resident

I act for an offshore trust where the trustees are considering bringing the trust onshore. The trust is likely to incur capital gains under TCGA 1992 s 1(3) and have available relevant income.

If the trust becomes UK resident and subsequently makes an offshore capital payment to the offshore account of a beneficiary who is a UK resident remittance basis user can the beneficiary claim remittance basis treatment in respect of the payment?

Query 19 896 – Adviser.

The answer is a straightforward ‘yes’.

The answer to Adviser’s query is a fairly straightforward ‘yes’. The remittance basis will apply to gains attributed to a beneficiary using that basis. Of course this is on the assumption that the gains in question were not taxable either on the settlor or on the trustees so that there are no gains to attribute to the beneficiary in the first place. ...