Section 1274 | Unremittable income: introduction

(1)This Part applies if—

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

(b)the income is unremittable.

(2)For the purposes of this Part, 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 company which is liable for corporation 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 company which is liable for corporation tax in respect of the income has not realised it outside that territory for an amount in sterling or in another currency which the company is not prevented from transferring to the United Kingdom.