Income Tax (Earnings and Pensions) Act 2003 section 36

Election in respect of delayed remittances

Section 36 sets out how an individual who has been unable to remit overseas earnings to the UK can elect to allocate those delayed remittances to specific earlier tax years when the earnings were originally blocked.

• When a claim is made for delayed remittances and the claimant has "blocked earnings" (earnings that could not be transferred to the UK due to conditions in the overseas territory), the claimant may elect to allocate those remittances to one or more earlier tax years
• The allocation can only be made to a tax year in which the earnings were originally earned but could not be remitted, and the amount allocated to any given year must not exceed the amount that was actually blocked in that year
• If the claimant chooses to allocate amounts across more than one tax year, the election must specify exactly how much is allocated to each year
• The election forms part of the overall claim for delayed remittances, is irrevocable once made, and can also be made by personal representatives on behalf of a deceased individual