Income Tax Act 2007 section 809W

Consideration for certain services

Section 809W provides an exemption from the remittance basis charge where a UK-provided service relates mainly to overseas property and is paid for entirely through offshore bank accounts.

• Where foreign income or gains would normally be treated as remitted to the UK because a service is provided here and paid for with those foreign funds, this section can prevent that treatment from applying.
• The exemption requires that the UK service relates wholly or mainly to property situated outside the UK, and that the entire payment for the service is made into overseas bank accounts held by or on behalf of the service provider.
• The exemption does not apply if the UK service relates to the provision in the UK of certain benefits derived under the transfer of assets abroad rules or the settlements rules for chargeable gains.
• The location of assets for these purposes is determined using the same rules that apply for capital gains tax purposes.