International aspects of personal taxation (for P6 (UK)) - self-test: answers

Test your understanding: answers

(1). Statement A is false
Although Finch is resident but not domiciled in the UK, he must satisfy one of the following conditions in order to be able to claim the remittance basis.

  • He must be non-UK resident for three consecutive tax years in the previous five tax years, or
  • His income must be in respect of duties performed wholly abroad for an overseas employer.

Finch does not satisfy either of these conditions.

Statement B is true because Finch is resident but not domiciled in the UK.

(2). The expenses reimbursed to Wren will be exempt from income tax. This is because the costs incurred would qualify for a deduction from employment income if they were not reimbursed by Wren’s employer.