Income Tax (Earnings and Pensions) Act 2003

[F1554Z9Remittance basis: [F2A does not meet section 26A requirement] U.K.
This section has no associated Explanatory Notes

(1)[F3Subsections (2) and (2A) apply] if—

(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,

[F4(c)A does not meet the requirement of section 26A for the relevant tax year (reading references there to the employee as references to A),]

(d)A's employment with B in the relevant tax year is employment with a foreign employer, and

(e)the duties of A's employment with B in the relevant tax year are performed wholly outside the United Kingdom.

[F5(1A)But [F6subsections (2) and (2A) do not apply] if section 24A applies in relation to A's employment with B for the relevant tax year.]

(2)[F7Except in a case within subsection (2A),] A's employment income by virtue of section 554Z2(1), or the relevant part of it, is “taxable specific income” in a tax year so far as it is remitted to the United Kingdom in that year.

[F8(2A)Where the relevant step is within paragraph 1 of Schedule 11 to F(No. 2)A 2017, A's employment income by virtue of section 554Z2(1), or the relevant part of it, is “taxable specific income” in the tax year in which the relevant step is treated as being taken so far as the income is remitted to the United Kingdom in that tax year or in any previous tax year.]

(3)For [F9the purposes of subsections (2) and (2A)], 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.

(4)Subsection (5) applies if in the relevant tax year—

(a)A has associated employments, and

(b)the duties of the associated employments are not performed wholly outside the United Kingdom.

(5)The amount of A's employment income to which [F10subsection (2) or (2A)] applies is limited to such amount as is just and reasonable, having regard to—

(a)A's employment income for the relevant tax year from all associated employments, together with A's employment with B,

(b)the proportion of that income [F11(or of so much of it as is attributable to the UK part of the relevant tax year, if it was a split year as respects A)] which is general earnings to which section 22 applies or is employment income to which section 41A applies,

(c)the nature of and time devoted to the duties performed outside the United Kingdom, and those performed in the United Kingdom, in the relevant tax year [F12(or the UK part of it)], and

(d)all other relevant circumstances,

and, if the amount of A's employment income to which [F13subsection (2) or (2A)] would otherwise apply exceeds that limit, the amount of A's employment income to which [F14subsection (2) or (2A) (as the case may be)] applies is instead to be such amount as is just and reasonable.

(6)In this section “associated employments” means employments with B or with employers associated with B; and section 24(5) and (6) applies for the purposes of this subsection.]

Textual Amendments

F1Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1

F2Words in s. 554Z9 heading substituted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 13(2) (with Sch. 46 para. 26)

F3Words in s. 554Z9(1) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(2)

F4S. 554Z9(1)(c) substituted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 13(1) (with Sch. 46 para. 26)

F5S. 554Z9(1A) inserted (with effect in accordance with Sch. 3 para. 7(4) of the amending Act) by Finance Act 2014 (c. 26), Sch. 3 para. 5

F6Words in s. 554Z9(1A) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(3)

F7Words in s. 554Z9(2) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(4)

F8S. 554Z9(2A) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(5)

F9Words in s. 554Z9(3) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(6)

F10Words in s. 554Z9(5) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(7)(a)

F11Words in s. 554Z9(5)(b) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 70(a)

F12Words in s. 554Z9(5)(c) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 70(b)

F13Words in s. 554Z9(5) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(7)(b)(i)

F14Words in s. 554Z9(5) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(7)(b)(ii)