Income Tax (Earnings and Pensions) Act 2003 section 35

Relief for delayed remittances

Section 35 provides relief for employees taxed on the remittance basis who were unable to bring their overseas earnings into the United Kingdom in an earlier year due to local legal restrictions or the impossibility of obtaining transferable currency.

• Employees taxed on the remittance basis may claim relief where earnings from an earlier year could not be remitted to the United Kingdom due to local law or currency transfer restrictions in the country where the income was received.
• A claim may be made for all or part of the delayed remittances, and the earnings in question must have been received in an earlier tax year but only remitted to the United Kingdom in a later year.
• The effect of a successful claim is that the tax charge in the year the delayed earnings are actually remitted is reduced, and instead the earnings are treated as taxable in the earlier year in which they were originally received.
• Where no specific election is made, the delayed remittances are automatically allocated back to the tax year (or years) in which they were originally received, or the employee may make an election under section 36 to allocate the amounts differently.