Annex 1: Minor Changes in the Law Change 90: Unremittable income: conditions for granting relief: section 1274
This change broadens one condition and removes another condition for claims for relief in respect of unremittable income under section 584 of ICTA. The corresponding change was made for income tax by section 841 of ITTOIA (see Change 135 in Annex 1 to the explanatory notes for that Act).
This change brings the income tax and corporation tax codes back into line.
Section 584 of ICTA provides for relief for companies 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 refers 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 company obtaining foreign currency in the overseas territory “notwithstanding any reasonable endeavours on its part”.
This change increases the range of income in respect of which relief for unremittable income may be available.
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.