Income Tax (Trading and Other Income) Act 2005

830 Meaning of “relevant foreign income” U.K.

(1) In this Act “relevant foreign income” means income [F1 which—

(a) arises from a source outside the United Kingdom, and

(b) is chargeable under any of the provisions specified in subsection (2) (or would be so chargeable if section 832 did not apply to it).]

(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),

F2 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 [F3 of—

(a) section 844 (unremittable income: income charged on withdrawal of relief after source ceases), or

(b) section 517C or 517E of ITA 2007 (profits on certain disposals concerned with land in the United Kingdom treated as trading profits).]

[F4 (3A) “Relevant foreign income” does not include income paid in respect of a security, within the meaning of section 138ZB of TCGA 1992, if—

(a) the security is treated, for the purposes of that Act, as situated in the United Kingdom as a result of section 138ZB of that Act, and

(b) that section applies in respect of the security as a result of an issue of shares in or debentures of a company in exchange for, or in respect of, shares in or debentures of another company that is incorporated, and is resident, in the United Kingdom.]

(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),

[F5 (aa) regulation 19 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001),]

(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), F6 ...

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

[F7 (h) section 670A of ITA 2007 (accrued income profits),]F8 [F9 ...

(i) sections 726, 730 and 735 of that Act (transfer of assets abroad: foreign deemed income)] [F10 , and

(j) paragraph 46(2) of Schedule 2 to FA 2022 (qualifying asset holding companies).]

Textual Amendments

F1 Words in s. 830(1) substituted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 51(2)

F2 S. 830(2)(d) omitted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 7 para. 51(3)

F3 Words in s. 830(3) substituted (with effect in accordance with s. 82 of the amending Act) by Finance Act 2016 (c. 24), s. 79(11) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))

F4 S. 830(3A) inserted (retrospective to 17.11.2022) by Finance (No. 2) Act 2023 (c. 30), s. 36(5)(6)

F5 S. 830(4)(aa) substituted (1.12.2009) (with effect in accordance with art. 1(2)(3) of, Sch. 1 to the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 128(4)

F6 Word in s. 830(4)(f) omitted (with effect in accordance with Sch. 7 para. 160 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 7 para. 156(a)

F7 S. 830(4)(h) inserted (with effect in accordance with Sch. 7 para. 160 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 156(b)

F8 Word in s. 830(4) omitted (24.2.2022) by virtue of Finance Act 2022 (c. 3), Sch. 2 para. 56(2)

F9 S. 830(4)(i) and word inserted (with effect in accordance with Sch. 7 para. 170 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 162

F10 S. 830(4)(j) and word inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 56(2)