Corporation Tax Act 2009 section 1274

Unremittable income: introduction

Section 1274 defines what "unremittable income" means and sets out when the rules in this Part apply to a company that has earned income overseas but cannot bring it back to the United Kingdom.

• The rules apply where a company is liable to corporation tax on income arising in a territory outside the United Kingdom and that income is unremittable
• Income is unremittable only if both Condition A and Condition B are satisfied
• Condition A requires that the income cannot be transferred to the United Kingdom because of the laws of the overseas territory, executive action by its government, or the impossibility of obtaining currency there that could be sent to the United Kingdom
• Condition B requires that the company has not converted or realised the income outside that territory into sterling or any other currency that it is able to transfer to the United Kingdom