Annex 1: Minor changes in the law made by the Act: Change 50: Deductions for unremittable amounts: sections 187 to 191
This change gives statutory effect to ESC B38 (tax concessions on overseas debts). In doing this the Act makes a number of changes to the approach in the extra-statutory concession.
ESC B38 provides relief for trade debts that cannot be remitted to the United Kingdom. It is similar in scope to section 584 of ICTA which provides relief for unremittable income arising outside the United Kingdom, including unremittable trade profits. But section 584 of ICTA does not extend to trade debts owed to, or paid to, the trader outside the United Kingdom if the profits of the trade arise in the United Kingdom. For example, debts or payments arising from export sales. The extra-statutory concession gives relief for such debts and payments.