Income Tax Act 2007 section 809P

Section 809L: amount remitted

Section 809P sets out the rules for calculating the amount of foreign income or chargeable gains that is treated as remitted to the United Kingdom under the remittance basis.

• Where foreign income or gains (or property derived from them) are brought to the UK, the remitted amount equals the original income or gains from which the property derives
• Where foreign income or gains are used overseas to pay a debt relating to UK property or services, the remitted amount equals the income or gains so used, but may be capped where the debt only partly relates to the property or service
• The total amount treated as remitted can never exceed the actual amount of the underlying income or chargeable gains, taking into account any amounts previously remitted and already charged to tax
• Where only part of a set of property is present in the UK, the remitted amount is a just and reasonable proportion of what it would have been had the complete set been brought to the UK