What is the automatic remittance basis income threshold for foreign income?

The automatic remittance basis income threshold for foreign income is set at £2,000. This threshold is significant because it determines the level of foreign income individuals can earn without having to pay UK tax on that income, provided they do not bring it into the UK. Under this system, taxpayers who are not domiciled in the UK have the option to be taxed only on their UK income and on foreign income to the extent that it is brought into the UK. If their foreign income is below this threshold, they can benefit from the remittance basis without incurring additional tax liabilities.

The amounts specified in the other options do not align with the established threshold for taxation purposes under the remittance basis, which is specifically designed to provide clarity and guidance on tax obligations for non-domiciled individuals. The established threshold helps taxpayers plan their finances and compliance with tax regulations effectively.