Income Tax (Trading and Other Income) Act 2005 section 845A

Claim for relief for qualifying new residents

Section 845A allows individuals who are qualifying new UK residents to claim tax relief on their qualifying foreign income, reducing their UK income tax liability for the relevant tax year.

• A qualifying new resident may claim relief (a "foreign income claim") to exclude qualifying foreign income from their UK income tax calculation for a tax year
• The relief works by deducting qualifying foreign income from the individual's total income when calculating net income, and the specific items of qualifying foreign income must be identified in the claim
• The claim must be made in a self-assessment tax return and submitted within 12 months of the 31 January following the end of the relevant tax year (e.g. by 31 January 2028 for the 2025/26 tax year)
• Making a foreign income claim has wider tax consequences, including potential restrictions on loss relief, personal allowances, and the loss of the capital gains tax annual exempt amount

---