Section 41C | Section 41A: foreign securities income ^F1

(1)The extent to which the securities income is “foreign” is to be determined as follows.

(2)Treat an equal amount of the securities income as accruing on each day of the relevant period.

(3)If any part of the relevant period is within a tax year to which subsection (4) applies, the securities income treated as accruing in that part of the relevant period is “foreign”.This is subject to section 41D (limit where duties of associated employment performed in UK).

(4)This subsection applies to a tax year if—

(a)section 809B, 809D or 809E of ITA 2007 applies to the individual for the year,

(b)the individual does not meet the requirement of section 26A for the year (reading references there to the employee as references to the individual),^F2

(c)the employment is with a foreign employer, and

(d)the duties of the employment are performed wholly outside the United Kingdom.

(4A)But subsection (4) does not apply to a tax year if section 24A applies in relation to the employment for the tax year.^F3

(5)If any part of the relevant period is within a tax year to which subsection (6) applies—

(a)if the duties of the employment are performed wholly outside the United Kingdom, the securities income treated as accruing in that part of the relevant period is “foreign”, and

(b)if some but not all of those duties are performed outside the United Kingdom—

(i)the securities income mentioned in paragraph (a) is to be apportioned (on a just and reasonable basis) between duties performed in the United Kingdom and duties performed outside the United Kingdom, and

(ii)the income apportioned in respect of duties performed outside the United Kingdom is “foreign”.

(6)This subsection applies to a tax year if—

(a)section 809B, 809D or 809E of ITA 2007 applies to the individual for the year,

(b)the individual meets the requirement of section 26A for the year (reading references there to the employee as references to the individual), and^F4

(c)some or all of the duties of the employment are performed outside the United Kingdom.

(7)If the individual is not resident in the United Kingdom in a tax year, for the purposes of this section treat section 809B of ITA 2007 as applying to the individual for that year.

(8)This section is subject to section 41E (foreign securities income: just and reasonable apportionment).

(9)If subsection (4) does not apply to a tax year by virtue of subsection (4A), it is to be assumed for the purposes of section 41E that it is just and reasonable for none of the securities income treated as accruing in the tax year to be “foreign”.^F5