[F1809JSection 809I: order of remittancesU.K.
(1)If section 809I applies, the following steps are to be taken for the purpose of determining the income or gains treated in a tax year (“the relevant tax year”) as remitted to the United Kingdom by the individual.
Step 1
Find the total amount of—
(a)the individual's nominated income and gains, and
(b)the individual's remittance basis income and gains,
that have been remitted to the United Kingdom in the relevant tax year.
This amount is “the relevant amount”.
Step 2
Find the amount of foreign income and gains of the individual for the relevant tax year (other than income or chargeable gains nominated under section 809C) that is within each of the categories of income and gains in paragraphs (a) to (h) of subsection (2).
If none of sections 809B, 809D and 809E apply to the individual for that year, treat those amounts as nil (and accordingly go to step 6).
Step 3
Find the earliest paragraph for which the amount determined under step 2 is not nil.
If that amount does not exceed the relevant amount, treat the individual as having remitted the income or gains within that paragraph (and for that tax year).
Otherwise, treat the individual as having remitted the relevant proportion of each kind of income or gains within that paragraph (and for that tax year).
“The relevant proportion” is the relevant amount divided by the amount determined under step 2 for that paragraph.
Step 4
Reduce the relevant amount by the amount taken into account under step 3.
Step 5
If the relevant amount (as reduced under step 4) is not nil, start again at step 3.
In step 3, read the reference to the earliest paragraph of the kind mentioned there as a reference to the earliest such paragraph which has not previously been taken into account under that step.
Step 6
If the relevant amount (as reduced) is not nil once steps 3 to 5 have been undertaken in relation to all paragraphs of subsection (2) for which the amount determined under step 2 is not nil, start again at step 2.
In step 2, read the reference to the foreign income and gains of the individual for the relevant tax year as a reference to such of the foreign income and gains of the individual for the appropriate tax year as had not been remitted by the beginning of the relevant tax year.
“The appropriate tax year” is the latest tax year which is—
(a)before the last tax year for which step 2 has been undertaken, and
(b)a tax year for which section 809B, 809D or 809E applies to the individual.
(2)The kinds of income and gains are—
(a)relevant foreign earnings (other than those subject to a foreign tax),
(b)foreign specific employment income (other than income subject to a foreign tax),
(c)relevant foreign income (other than income subject to a foreign tax),
(d)foreign chargeable gains (other than gains subject to a foreign tax),
(e)relevant foreign earnings subject to a foreign tax,
(f)foreign specific employment income subject to a foreign tax,
(g)relevant foreign income subject to a foreign tax, and
(h)foreign chargeable gains subject to a foreign tax.
(3)In this section the individual's “nominated income and gains” are the total income and chargeable gains nominated by the individual under section 809C for the relevant tax year or any earlier tax year.
(4)In step 1 of subsection (1) the individual's “remittance basis income and gains” are the foreign income and gains of the individual for all the tax years (up to and including the relevant tax year) for which section 809B, 809D or 809E applies to the individual, apart from the individual's nominated income and gains.
(5)In step 6 of subsection (1) the reference to income or gains being remitted is—
(a)as respects any tax year before section 809I applies, to income or gains being remitted to the United Kingdom, and
(b)as respects any tax year in relation to which that section applies, to income or gains treated under this section as so remitted.
(6)In subsection (2) “foreign tax” means any tax chargeable under the law of a territory outside the United Kingdom.]
Textual Amendments
F1Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)