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Where a UK tax resident has income or foreign chargeable gains from a country with which the UK has a Double Taxation Agreement (DTA), the terms of that double taxation treaty must be taken into account when calculating the amount of UK tax payable on that income - see INTM160000+.

In the same way as the majority of UK resident taxpayers, an individual who elects to pay UK tax on the remittance basis may be entitled to set certain amounts of foreign tax against their liability to UK tax on that same income or gain.

Note 1: Each case must be considered on its particular facts, and the treatment of particular amounts will depend on the precise terms of the relevant DTA.

Note 2: Where a remittance basis taxpayer only remits part of an amount of foreign income or foreign chargeable gains on which foreign tax credit relief is available, they can only have credit for the appropriate percentage part of the foreign tax.

For example, Rob has foreign income of 拢1,000 on which he has paid 鈥榓dmissable鈥� foreign tax of 拢100. He has 拢900 available to be remitted but he remits only 拢450. Rob may claim credit for half the foreign tax (拢50). If, at a later date, Rob remits the remaining 拢450 he can then claim the remaining 拢50 credit against his liability to UK tax on the remitted income for the foreign tax he has already paid.