Income Tax (Trading and Other Income) Act 2005 section 838

Expenses attributable to collection or payment of relevant foreign income

Section 838 allows a deduction for certain overseas expenses incurred in collecting or receiving relevant foreign income when calculating the amount chargeable to income tax.

• A deduction is available for expenses incurred outside the UK that relate to the collection or payment of relevant foreign income.
• The expenses must be directly attributable to gathering or disbursing that foreign income.
• The deduction is applied when calculating the amount of relevant foreign income chargeable to income tax for a tax year.
• This relief does not apply where the foreign income is taxed on the remittance basis under section 832.