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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Remittance basis rules: employees who met section 26A requirement

  • Section 25 UK-based earnings for year when employee resident, but not ordinarily resident, in UK
  • Section 26 Foreign earnings for year when remittance basis applied and employee met section 26A requirement
  • Section 26A Section 26: requirement for 3-year period of non-residence
  1. Remittance basis rules: employees who met section 26A requirement
  2. Foreign earnings for year when remittance basis applied and employee met section 26A requirement

Section 26 | Foreign earnings for year when remittance basis applied and employee met section 26A requirement

From legislation.gov.uk

(1)This section applies to general earnings for a tax year where section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the employee for that year and the employee met the requirement of section 26A for that year, if the general earnings meet all of the following conditions—F1F2F3F4F5

(a)they are neither—F5

(i)general earnings in respect of duties performed in the United Kingdom, norF5

(ii)general earnings from overseas Crown employment subject to United Kingdom tax, andF5

(b)if the tax year is a split year as respects the employee, they are attributable to the UK part of the year.F5

(2)The full amount of any general earnings within subsection (1) which are remitted to the United Kingdom in a tax year is an amount of “taxable earnings” from the employment in that year.

(3)Subsection (2) applies whether or not the employment is held when the earnings are remitted.F6

(4)Section 28 explains what is meant by “general earnings from overseas Crown employment subject to United Kingdom tax”.

(5)See Chapter A1 of Part 14 of ITA 2007 for the meaning of “remitted to the United Kingdom” etc.F7

(5A)Any attribution required for the purposes of subsection (1)(b) is to be done on a just and reasonable basis.F7F8

(6)Section 15(1) does not apply to general earnings within subsection (1).F7F9

Notes

  1. F1

    Words in s. 26(1) substituted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 19(2) (with Sch. 7 para. 82)

  2. F2

    Word in s. 26(1) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(7)(b)(i)

  3. F3

    Words in s. 26(1) substituted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 9(1) (with Sch. 46 para. 26)

  4. F4

    Word in s. 26(1) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(7)(b)(ii)

  5. F5

    Words in s. 26(1) substituted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 62(2)

  6. F6

    S. 26(3) substituted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 19(3) (with Sch. 7 para. 82)

  7. F7

    S. 26(5)(6) inserted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 19(4) (with Sch. 7 para. 82)

  8. F8

    S. 26(5A) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 62(3)

  9. F9

    S. 26(6) substituted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 62(4)

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