Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 8 U.K. Foreign income: special rules

Chapter 2 U.K. Relevant foreign income charged on remittance basis

Relief for delayed remittances U.K.

836 Relief for delayed remittances: backdated pensions U.K.

(1) This section applies if—

(a) section 832 applies to a pension or annuity, or an increase in a pension or annuity, that is treated as relevant foreign income as a result of section 575(3), 613(4) or 635(4) of ITEPA 2003,

(b) the pension, annuity or increase was granted retrospectively, and

(c) an amount of pension, annuity or increase is paid in respect of a tax year (“the earlier year”) before the tax year in which it was granted.

(2) For the purposes of section 835 that amount of pension, annuity or increase is treated as income arising in the earlier year from a source that the person liable for the tax possessed in the earlier year.

(3) The condition in section 835(3) only applies to the pension, annuity or increase in the period after it becomes payable.