Income Tax Act 2007 section 735AC

Transitionally protected income not to be taxed on remittance

Section 735AC ensures that transitionally protected income is exempt from being taxed under the remittance basis rules.

• Transitionally protected income cannot be taxed when it is remitted to the UK
• The normal remittance basis charging rule for relevant foreign income does not apply to this category of income
• This provision was introduced by Finance Act 2025 as part of the transitional protections for the reformed foreign income regime
• The effect is to shield qualifying income from a UK tax charge that would otherwise arise on remittance