F1Part 7AEmployment income provided through third parties

CHAPTER 2Treatment of relevant step for income tax purposes

Remittance basis

554Z10Remittance basis: F2A meets section 26A requirement

(1)

F3Subsections (2) and (2A) apply if—

F4(a)

the value of the relevant step, or a part of it, is “for” a tax year (“the relevant tax year”) as determined under section 554Z4,

(b)

section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to A for the relevant tax year, and

F5(c)

A meets the requirement of section 26A for the relevant tax year (reading references there to the employee as references to A).

F6(2)

F7Except in a case within subsection (2AA), The overseas portion of (as the case may be)—

(a)

A's employment income by virtue of section 554Z2(1), or

(b)

the relevant part of A's employment income by virtue of that section,

is “taxable specific income” in a tax year so far as the overseas portion is remitted to the United Kingdom in that year.

F8(2AA)

Where the relevant step is within paragraph 1 of Schedule 11 to F(No. 2)A 2017, the overseas portion of (as the case may be)—

(a)

A's employment income by virtue of section 554Z2(1), or

(b)

the relevant part of A's employment income by virtue of that section,

is “taxable specific income” in the tax year in which the relevant step is treated as being taken so far as the overseas portion is remitted to the United Kingdom in that tax year or in any previous tax year.

F9(2A)

The overseas portion” of A's employment income by virtue of section 554Z2(1), or of the relevant part of that income, is so much of that income, or of the relevant part of it, as is not in respect of UK duties.

(2B)

“UK duties” means duties performed in the United Kingdom.

(3)

For F10the purposes of this section, any income which is remitted before A's employment with B starts is treated as being remitted in the tax year in which the employment starts.

F11(4)

The extent to which—

(a)

the employment income, or the relevant part of it, is not in respect of UK duties, or

(b)

so much of the employment income, or of the relevant part of it, as is attributable to the UK part of the relevant tax year is not in respect of UK duties,

is to be determined on a just and reasonable basis.