Section 841 | Unremittable income: introduction

(1)This Chapter applies if—

(a)a person is liable for income tax on income arising in a territory outside the United Kingdom, and

(b)the income is unremittable.

(2)For the purposes of this Chapter, income is unremittable if conditions A and B are met.

(3)Condition A is that the income cannot be transferred to the United Kingdom by the person who is liable for income tax in respect of the income because of—

(a)the laws of the territory where the income arises,

(b)executive action of its government, or

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

(4)Condition B is that the person who is liable for income tax in respect of the income has not realised it outside that territory for an amount in sterling or in another currency which the person is not prevented from transferring to the United Kingdom.

(5)This Chapter does not apply to accrued income profits which a person is treated as making under Chapter 2 of Part 12 of ITA 2007, but see sections 668 and 669 of that Act (which make similar provision).