Income Tax (Earnings and Pensions) Act 2003

35 Relief for delayed remittances

(1) A person may make a claim for relief under this section for a tax year in respect of delayed remittances from an employment.

(2) “Delayed remittances” are general earnings of the person which—

(a) were received in a country or territory outside the United Kingdom before the tax year for which relief is claimed,

(b) were not remitted to the United Kingdom until that tax year,

(c) could not have been transferred by the person to the United Kingdom before that tax year because of—

(i) the laws of the country or territory where they were received,

(ii) executive action of its government, or

(iii) the impossibility of obtaining there currency (other than the currency of that country or territory) that could be transferred to the United Kingdom, and

(d) constitute taxable earnings from the employment in that tax year under section 22(2) or 26(2) (general earnings which are taxable earnings if remitted to UK).

(3) If a person claims relief for a tax year in respect of delayed remittances from an employment, the amount of the remittances—

(a) is to be deducted from the person’s general earnings which constitute taxable earnings from the employment in that year under section 22(2) or 26(2); and

(b) is instead to constitute taxable earnings from the employment under that provision in one or more earlier tax years in accordance with—

(i) subsection (4), or

(ii) alternatively, section 36 where an election is made under that section.

(4) Where this subsection applies—

(a) the amount referred to in subsection (3)(b) is to be treated as taxable earnings from the employment in the tax year in which it was received, or

(b) if it consists of general earnings received in two or more tax years, so much of the amount as was received in each of those years is to be treated as taxable earnings from the employment in that year.