Finance Act 2013

21Payments on accountU.K.
This section has no associated Explanatory Notes

(1)ITA 2007 is amended as follows.

(2)In section 809K (sections 809L to 809Z6: introduction), in subsection (2)(e), for “809V” substitute “ 809UA ”.

(3)Before section 809V (but after the italic heading) insert—

809UAMoney used for payments on account

(1)Subsection (2) applies to income or chargeable gains of an individual if—

(a)the income or gains would (but for subsection (2)) be regarded as remitted to the United Kingdom by virtue of the bringing of money to the United Kingdom,

(b)the money is brought to the United Kingdom by way of direct payments to the Commissioners on account of income tax,

(c)the tax year (“tax year 2”) in respect of which the payments on account are made is a tax year for which section 809H (remittance basis charge for long-term UK resident) does not apply as respects the individual, and

(d)that section applied as respects the individual for the previous tax year (“tax year 1”).

(2)The relevant amount of income or chargeable gains is to be treated as not remitted to the United Kingdom if money equal to the relevant amount is taken offshore by—

(a)the 15 March following the end of tax year 2, or

(b)such later date as the Commissioners may allow on a claim made by the individual.

(3)A claim under subsection (2)(b)—

(a)may be made only if the individual has made and delivered a return under section 8 of TMA 1970 for tax year 2 and reasonably expects to receive from the Commissioners a repayment of tax paid in respect of that tax year, and

(b)may be made no later than the 5 April following the end of tax year 2.

(4)Money that is taken offshore in accordance with subsection (2) is to be treated as having the same composition of kinds of income and capital as the money used to make the payments on account.

(5)In this section “the relevant amount” means the lower of the following—

(a)the amount brought to the United Kingdom as mentioned in subsection (1)(b), and

(b)the applicable amount (as defined in section 809H) for tax year 1.

(4)In section 809Z9(11) (taking proceeds etc offshore or investing them: modification of general provisions)—

(a)for “section 809VB(2) but in that case” substitute “ sections 809UA(2) and 809VB(2), but in those cases ”, and

(b)at the beginning of paragraph (b) insert “ in the case of section 809VB(2), ”.

(5)The amendments made by this section have effect in relation to payments on account made in respect of the tax year 2012-13 and subsequent tax years.