As resident in the UK you are being taxed on an Arising basis.
Arising Basis of Taxation means you will pay UK tax on all of your income as it arises and on your gains as they accrue, wherever that income and those gains are in the world.
The Remittance Basis of Taxation is an alternative tax treatment available to some people who are resident in the UK and who are either non domiciled in the UK (you are normally considered to be domiciled in the country where you have your permanent home) or/and non ordinary resident in the UK (your residence in the UK is typical for you and not casual and your presence here has a settled purpose ; it is part of a regular and habitual mode of your life for the time being).
This treatment of tax is only relevant if you have foreign income or/and gains. If you are eligible and choose to use the remittance basis, you will be liable to UK tax on all of your UK income and gains on an arising basis but you will only be liable to UK tax on your foreign income and/or gains if and when you remit them to the UK that means when you bring them directly or indirectly to the UK.
What is important when opting to have your foreign income taxed on a remittance basis is the amount of unremitted foreign income and/or gains you actually have during the tax year.
If your unremitted foreign income (and/or gains) arising or accruing in the tax year is less than £2,000 you can use the remittance basis without having to make a claim.
If your unremitted foreign income (and/or gains) arising or accruing in a tax year is more than £2,000, you will have to make a claim if you want the remittance basis to apply to you otherwise you will be liable to UK tax on the arising basis.
If you decide to claim the remittance basis and have been a ‘long term’ resident in the UK (resident in the UK for at least seven out of the last nine tax years immediately preceding the relevant tax year) you may have to pay the The Remittance Basis Charge (RBC).
The RBC is an annual tax charge of £30,000. It is tax on a part of the foreign income and gains which you leave outside the UK (unremitted) and is payable in addition to any UK tax that you have to pay on either UK income (and/or gains) or foreign income and gains remitted to the UK.
We here at Taxfile hope you found this useful . As this is a complicated area of expertise you should always seek professional advice before taking any decisions related to residence, domicile and the remittance basis.
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