FA 2012 introduces a new relief for UK residents who qualify for the remittance basis, whereby overseas income or gains remitted to the UK are not taxed if invested in qualifying companies. Under the rules, the remittance basis charge must have been paid in the tax year the income or gains arose. The investee company must be unlisted on the stock exchange and trading commercially. Property businesses qualify as trades. The company need not be UK-resident. Chargeable events cause the funds to become taxed as remitted. The effect of chargeable events can be mitigated by taking the funds out of the UK or making qualifying re-investments. Time limits apply.
