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

Foreign securities income: just and reasonable apportionment

Section 41E provides a safeguard ensuring that the amount of securities income classified as "foreign" must be determined on a just and reasonable basis, overriding any other calculation that produces an unjust or unreasonable result.

• Where a standard calculation of the foreign element of securities income produces a result that is not just and reasonable, an override applies
• The amount treated as foreign securities income must be adjusted to whatever figure is just and reasonable in the circumstances
• This acts as an anti-avoidance measure preventing manipulation of the foreign/UK split of securities income
• The provision applies specifically in the context of the remittance basis rules for taxable specific income under Chapter 5A of Part 2 of ITEPA 2003