It is a pleasure to be back, Mr Crausby.

Clause 21, like the previous two clauses that we discussed, would tidy up existing legislation in section 47 and schedule 12 of the Finance Act 2012 on taxation of remittances to the UK. Again, the clause deals with inadvertent remittances in certain circumstances. Long-term UK non-domiciled residents who elect to be taxed on the remittance basis are subject to an annual charge of £30,000 or £50,000, depending on whether the individual meets the seven-year residence test, if UK resident for at least seven of the nine tax years preceding that year, or the 12-year residence test, if UK resident in at least 12 of the 14 tax years immediately prior to that tax year. Under section 809V of the Income Tax Act 2007, the payments of this annual charge made in respect of foreignincome and gains do not constitute a taxable remittance. However, if for whatever reason the charge is repaid in part or in full by HMRC, this repayment is currently not exempted from being regarded as a taxable remittance.

Let me put a little bit of colour on what may seem a rather dry clause. Individuals who elect to be taxed on the remittance basis and make payments for a non-domiciled charge on account to HMRC and then, in a later year, decide no longer to be taxed on the remittance basis, could find that the repayment of the annual charge by HMRC would constitute a taxable remittance. The clause would amend that situation, provided that any repayment made in the circumstances described is taken offshore by 15 March in the end of the tax year in which that amount is repaid.

The tax information and impact note provided on non-domiciled taxation does not mention the minor change made by the clause, so it would help if the Minister clarified exactly how many people will feel the impact of the clause, or have been affected by this situation, and for whom the change is being made.

The clause raises the same issues as clause 20, in relation to whether the Minister is confident about how the 2012 changes to the remittance basis of taxation are  working and whether he envisages that any further changes are required to legislation, in addition to the clause and the change that we are considering.