Income Tax (Earnings and Pensions) Act 2003 section 26

Foreign earnings for year when remittance basis applied and employee met section 26A requirement

Section 26 deals with how foreign earnings are taxed for employees who are on the remittance basis and who meet the section 26A requirement (a three-year period of non-residence), ensuring that such earnings only become taxable when they are actually brought into the UK.

• Applies to employees on the remittance basis who meet the section 26A requirement, covering earnings from duties performed outside the UK that are not from overseas Crown employment subject to UK tax
• Foreign earnings falling within this section become taxable only when, and to the extent that, they are remitted to the United Kingdom
• The remittance basis applies regardless of whether the employment is still held at the time the earnings are brought into the UK, and regardless of the tax year in which the earnings were originally received
• Where the tax year is a split year for the employee, earnings must be attributed to the UK or overseas part of the year on a just and reasonable basis