Part 12Accrued income profits

Chapter 2Accrued income profits and losses

Relief where transfer proceeds unremittable

668Relief for unremittable transfer proceeds: general

1

This section applies if—

a

a person is liable for income tax on accrued income profits,

b

the profits are calculated by reference to payments treated as made to the person in an interest period,

c

the payments are so treated as a result of the person making transfers of foreign securities of a particular kind, and

d

the proceeds of the transfers are unremittable in the tax year.

2

If the person makes a claim for relief under this section—

a

the profits are reduced by the amount of the payments treated as made to the person, or

b

if that amount exceeds the profits, the profits are reduced to nil.

3

But see section 670 (withdrawal of relief).

4

In this section and section 669 “foreign securities” means securities which are situated outside the United Kingdom.

5

For the purposes of this section and sections 669 and 670, proceeds of transfers of foreign securities are unremittable in relation to a person if the person is prevented from transferring them to the United Kingdom because of—

a

the laws of the territory where the securities are situated,

b

executive action of its government, or

c

the impossibility of obtaining there currency that could be transferred to the United Kingdom.

6

For the purposes of this section the place where securities are situated is to be determined in accordance with sections 275(1) and (2)(b) and 275C of TCGA 1992.

7

Any claim under this section must be made F1not more than 4 years after the end of the tax year for which the profits would be chargeable to tax if no claim were made.

8

A person's personal representatives may make any claim under this section which the person might have made.