Income Tax (Earnings and Pensions) Act 2003

36 Election in respect of delayed remittances

(1) This section applies if—

(a) a person (“the claimant”) claims relief under section 35 for a tax year in respect of delayed remittances from an employment, and

(b) at the end of that year the claimant had blocked earnings from that employment for one or more previous tax years.

(2) General earnings are “blocked earnings” for a tax year if they—

(a) were received in a country or territory outside the United Kingdom in that year,

(b) could not be transferred by the claimant to the United Kingdom in that year because of any of the things mentioned in section 35(2)(c), and

(c) would have constituted taxable earnings from the employment in that year under section 22(2) or 26(2) (general earnings which are taxable earnings if remitted to UK) if they had been so transferred.

(3) The claimant may elect for the purposes of section 35(3)(b) to have the amount of the delayed remittances treated as taxable earnings from the employment in one or more tax years specified in the election.

(4) A claimant may only specify a particular tax year if—

(a) there were blocked earnings of the claimant for that year from the employment, and

(b) it is a year prior to the tax year for which relief is claimed.

(5) If more than one year is specified, the election must indicate the amount which is to be treated as taxable earnings in each of those years.

(6) However the amount of the delayed remittances which the claimant elects to be treated as taxable earnings in a particular tax year must not exceed—

BE - PC

where—

• BE is the amount of blocked earnings of the claimant for that year from the employment, and

• PC is the amount of remittances treated as taxable earnings from the employment in that year as a result of a previous claim by the claimant under section 35.

(7) An election under this section—

(a) must be made as part of the claim under section 35, and

(b) is irrevocable.

(8) A person’s personal representatives may make any election under this section which the person might have made.