Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Just a thought...

05 June 2018
Issue: 4650 / Categories: Forum & Feedback

Can remittance basis users benefit from the trading and property allowances introduced in 2017-18?

The trading and property allowances apply to overseas income that qualifies under the main rules in F(No 2)A 2017 Sch 3 (overseas trading income overseas miscellaneous income and overseas property income). This is because there is no territorial restriction in the legislation and it is reinforced – in relation to the property allowance at least – by para 30 of the explanatory notes to the Bill (these have yet to be published on www.legislation.gov.uk). Therefore the allowances can apply when such income is taxable on the arising basis.

However when the remittance basis applies overseas income loses its character under ITTOIA 2005 s 830 and instead it is taxed as relevant foreign income under ITTOIA 2005 s 832. Therefore from a general principles point of view the starting assumption was that the allowances should not apply to overseas trading income miscellaneous...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon