(1)In calculating the amount of relevant foreign income to be charged to income tax for a tax year, a deduction is allowed for expenses incurred outside the United Kingdom that are attributable to the collection or payment of the income.
(2)Subsection (1) does not apply to income charged for the tax year in accordance with section 832 (relevant foreign income charged on the remittance basis).
(1)In calculating the amount of relevant foreign income to be charged to income tax for a tax year, a deduction is to be allowed for an annual payment other than interest if it meets conditions A to C.
(2)Condition A is that the payment is payable out of the relevant foreign income.
(3)Condition B is that, had the payment arisen in the United Kingdom, it would have been chargeable to income tax under one of the following provisions or to corporation tax under Case III of Schedule D—
Chapter 10 of Part 4 (distributions from unauthorised unit trusts),
section 579 (charge to tax on royalties and other income from intellectual property),
Chapter 4 of Part 5 (certain telecommunication rights: non-trading income), or
Chapter 7 of Part 5 (annual payments not otherwise charged).
(4)Condition C is that the payment is made to a non-UK resident.
(5)Subsection (1) does not apply if—
(a)the relevant foreign income is received in the United Kingdom, or
(b)it is charged for the tax year in accordance with section 832 (relevant foreign income charged on remittance basis).
(6)In the case of relevant foreign income chargeable under Chapter 2 or 17 of Part 2 (trading income) that arises in the Republic of Ireland, this section applies with the omission of condition B and subsection (5)(a).
(1)This section applies if—
(a)as a result of section 575(3), 613(4) or 635(4) of ITEPA 2003 a pension or annuity or an increase in a pension or annuity is treated as relevant foreign income,
(b)the pension, annuity or increase is paid in respect of a tax year (“the earlier year”) before the tax year in which the pension, annuity or increase arose, and
(c)the income is not charged in accordance with section 832 (relevant foreign income charged on the remittance basis).
(2)If the person liable for the income tax makes a claim for relief under this section for the tax year in which the pension, annuity or increase paid in respect of the earlier year arises, that pension, annuity or increase is treated as income arising in the earlier year from a source that the person possessed in the earlier year.
(3)But subsection (2) does not affect the calculation of the full amount of the income so arising under section 575(2), 613(3) or 635(3) of ITEPA 2003 (under which the full amount of that income is to be calculated on the basis that the pension or annuity is 90% of its actual amount).
(4)Section 837 (claims for relief on delayed remittances) applies to claims under this section as it applies to claims under section 835.