Income Tax (Trading and Other Income) Act 2005 section 832B

Section 832: deductions from remitted income

Section 832B restricts deductions from remitted foreign income charged on the remittance basis, allowing them only where the income derives from an overseas trade, profession or vocation.

• Deductions from remitted foreign income charged under section 832(2) are only permitted if the income comes from a trade, profession or vocation carried on outside the UK.
• Where that condition is met, the same deductions are available as would apply to a UK-based trade, profession or vocation under the Income Tax Acts.
• No deductions are allowed against other types of remitted relevant foreign income, such as investment income or rental income from overseas sources.
• The effect is to place overseas traders on an equal footing with UK traders in terms of allowable expenses, but only when income is taxed on the remittance basis.