Income Tax (Trading and Other Income) Act 2005 section 643N

Person liable under section 643J or 643L and remittance basis applied

Section 643N sets out how settlement income attributed to an individual through the onward gift rules is treated where the individual used the remittance basis for tax years up to and including 2024–25.

• Where income was treated as arising to an individual for 2024–25 or earlier under the onward gift provisions (sections 643J or 643L), and the remittance basis applied for that year, the income is classified as relevant foreign income of that individual.
• The onward payment (or the part of it equal in value to the attributed income) is treated as deriving from that income for the purposes of the remittance basis rules in ITA 2007.
• When section 832 (which governs how relevant foreign income is charged on the remittance basis) applies to this income, the condition in paragraph (b) of section 832(2) is disregarded, so the normal restriction does not prevent the remittance basis from applying.
• References to sections 643I, 643J and 643L are to those provisions as they had effect for the tax year in which the income was treated as arising, preserving the law as it stood at that time.