Income Tax (Earnings and Pensions) Act 2003 section 41D

Limit on foreign securities income where duties of associated employment performed in UK

Section 41D limits the amount of income from securities that can be treated as "foreign securities income" (and therefore only taxable on the remittance basis) where the individual also holds an associated employment whose duties are partly or wholly performed in the UK.

• Where an individual holds an associated employment alongside the employment giving rise to foreign securities income, and the duties of that associated employment are not performed entirely outside the UK, a cap applies to the foreign securities income.
• The foreign securities income for the period is limited to an amount that is just and reasonable, taking into account the total earnings from all the relevant employments, the proportion of those earnings that qualify as chargeable overseas earnings, the nature of and time spent on duties performed in and outside the UK, and all other relevant circumstances.
• Associated employments are defined as employments with the same employer or with employers who are associated with each other.
• The meaning of "associated employer" is determined by reference to section 24(5) and (6) of the Income Tax Act 2007.