Income Tax (Trading and Other Income) Act 2005 section 842

Claim for relief for unremittable income

Section 842 allows a person to claim relief so that foreign income which cannot be brought into the UK (unremittable income) is excluded from their income tax liability, subject to certain conditions and time limits.

• Where a valid claim is made, unremittable income is left out of the income tax computation for the year in which it arises, effectively removing the tax charge on that income.
• The relief is not permanent — it can be withdrawn under section 843 if circumstances change and the income ceases to be unremittable.
• No claim can be made to the extent that the Export Credit Guarantee Department (ECGD) has already made a payment in relation to the income under the Export and Investment Guarantees Act 1991 or the Export Guarantees and Overseas Investment Act 1978.
• The claim must be submitted on or before the first anniversary of the normal self-assessment filing date for the tax year in which the income would otherwise have been taxable.