Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 200216

1

Regulation 12 (foreign income) is amended as follows.

2

In paragraph (1) for “possessions or from securities out of the United Kingdom” substitute “a source outside the United Kingdom or from foreign holdings”.

3

For paragraph (2) substitute—

2

The reference in paragraph (1) to “foreign holdings” shall be construed in accordance with section 571 of ITTOIA.

4

In paragraph (3)—

a

for sub-paragraph (b) substitute—

b

the amount authorised to be deducted by the relevant provision if the claimant’s foreign income comprises or includes a pension to which the following provisions of ITEPA apply—

i

section 567(5) and 617 (deduction allowed from taxable pension income);

ii

section 575(2)22 (taxable pension income: foreign pensions);

iii

section 613(3)23 (taxable pension income: foreign annuities); and

iv

section 635(3)24 (taxable pension income: foreign voluntary annual payments); and

b

in sub-paragraph (c)—

i

in paragraph (iii) for “Extra Statutory Concession A30” substitute “section 751(1)(c) of ITTOIA” and omit “or”; and

ii

at the end add—

or

v

section 730 of ITTOIA (foreign maintenance payments).

5

In paragraph (4) for “(within the meaning of the Taxes Act”) substitute “(within the meaning of Part 3 of ITTOIA)”.