Income Tax (Trading and Other Income) Act 2005

Chapter 1 Introduction

829 Overview of Part 8

This Part provides for—

(a) an alternative basis for calculating the amount charged for certain relevant foreign income (see Chapter 2),

(b) certain deductions in calculating relevant foreign income where that basis does not apply (see Chapter 3), and

(c) relief where a person is prevented from transferring income to the United Kingdom (see Chapter 4).

830 Meaning of “relevant foreign income”

(1) In this Act “relevant foreign income” means income which arises from a source outside the United Kingdom and is chargeable under any of the provisions specified in subsection (2).

(2) The provisions are—

(a) Chapter 2 of Part 2 (trade profits),

(b) Chapter 17 of Part 2 (adjustment income),

(c) Chapter 3 of Part 3 (profits of property business),

(d) Chapter 11 of Part 3 (overseas property income),

(e) Chapter 2 of Part 4 (interest),

(f) Chapter 4 of Part 4 (dividends from non-UK resident companies),

(g) Chapter 7 of Part 4 (purchased life annuity payments),

(h) Chapter 8 of Part 4 (profits from deeply discounted securities),

(i) Chapter 13 of Part 4 (sales of foreign dividend coupons),

(j) section 579 (royalties and other income from intellectual property),

(k) Chapter 3 of Part 5 (films and sound recordings: non-trading businesses),

(l) Chapter 4 of Part 5 (certain telecommunication rights: non-trading income),

(m) section 649 (estate income),

(n) Chapter 7 of Part 5 (annual payments not otherwise charged), and

(o) Chapter 8 of Part 5 (income not otherwise charged).

(3) But “relevant foreign income” does not include income chargeable as a result of section 844 (unremittable income: income charged on withdrawal of relief after source ceases).

(4) For the treatment of other income as relevant foreign income, see—

(a) section 857(3) (a partner’s share of a firm’s trading income),

(b) paragraph 6(3) of Schedule 3 to the Commonwealth Development Corporation Act 1999 (c. 20) (distributions by the Commonwealth Development Corporation),

(c) section 575(3) of ITEPA 2003 (taxable pension income: foreign pensions),

(d) section 613(4) of that Act (taxable pension income: foreign annuities),

(e) section 631(3) of that Act (pre-1973 pensions paid under the Overseas Pensions Act 1973 (c. 21)),

(f) section 635(4) of that Act (taxable pension income: foreign voluntary annual payments), and

(g) section 679(2) of that Act (taxable social security income: foreign benefits).