Introduction Details of the Section
2.Subsection (2) makes a consequential amendment to section 809K of ITA 2007.
3.Subsection (3) introduces new section 809UA of ITA 2007 which applies to certain individuals who are taxed on the remittance basis and who make payments on account under section 59A of the Taxes Management Act (TMA) 1970.
4.New subsection 809UA(1) sets out the qualifying conditions for new subsection 809UA(2). These are that payments on account are made in relation to a tax year using foreign income and gains in a year when an individual is not taxed on the remittance basis (‘year 1’) which follows a year in which they were liable to pay the annual remittance basis charge (‘year 2’).
5.New subsection 809UA(2) provides that the foreign income and gains are not treated as remitted to the UK, provided the individual takes offshore an amount equal to the relevant amount by 15 March of the tax year following tax year 2 or by a later date allowed by the Commissioners for HMRC following a claim made by a individual.
6.New subsection 809UA(5) defines the term ‘relevant amount’ for the purposes of new subsection 809UA(2) as the lower of the amount of foreign income and gains used to make payments on account and the annual remittance basis charge which the individual was liable to pay in tax year 1.
7.Subsection (4) makes consequential amendments to section 809Z9(11) ITA 2007.
8.Subsection (5) provides the commencement rule for the changes made by this section.