Annex 1: Minor changes in the law made by the Act: Change 135: Foreign income: special rules: relief for unremittable income and delayed remittances: conditions for granting relief: sections 835 and 841
This change broadens one condition and removes another condition for claims for relief in respect of unremittable income under section 584 or 585 of ICTA.
Section 584 of ICTA provides for relief for taxpayers taxed on income arising outside the United Kingdom, where the income cannot be remitted to the United Kingdom and certain conditions are met. Section 584(1)(a) and (2)(b) of ICTA refer to income which cannot be remitted to the United Kingdom because of the laws of the overseas territory, any executive action of its government or the impossibility of the person obtaining foreign currency in the overseas territory “notwithstanding any reasonable endeavours on his part”.
Section 585 of ICTA applies to taxpayers on the remittance basis (see section 65(4) of ICTA). It provides that relief from tax on income taxed under Schedule D Case IV or V may be claimed if the conditions set out in subsection (1)(a) to (c) are met.
	Subsection (1)(a) requires the taxpayer to have been unable to transfer the income to the United Kingdom.
	Subsection (1)(b) requires the inability to transfer to have been due to one of three reasons:the laws of the territory where the income arose;executive action of its government; orthe impossibility of obtaining foreign currency in that territory.
Subsection (1)(c) requires the inability to transfer to have been not due to any want of “reasonable endeavours” on the part of the taxpayer.
This change is in taxpayers' favour in principle and may benefit some in practice. But the numbers affected and the amounts involved are likely to be small.