Income Tax (Trading and Other Income) Act 2005 section 358

Meaning of "overseas property income"

Section 358 defines "overseas property income" for individuals who are taxed on the remittance basis, covering rental and other income from land outside the United Kingdom that falls outside the normal overseas property business rules.

• Overseas property income is income from land outside the United Kingdom that would normally form part of an overseas property business but does not because the remittance basis applies.
• Where a taxpayer is on the remittance basis, the normal rules for calculating overseas property business profits do not apply to this income.
• For remittance basis taxpayers, the overseas property business only covers profits from land in the Republic of Ireland, so all other foreign property income is treated as overseas property income instead.
• Income from land in the Republic of Ireland is excluded from the definition of overseas property income, as it continues to be dealt with under the overseas property business rules.