Paragraph 10 Income tax exemptions and relief

United Kingdom

(1)

No liability to income tax arises on

F1(a)

the remittance of an amount of designated qualifying overseas capital F2that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision F3, or

(b)

an amount of income treated as qualifying overseas capital under paragraph 6 that—

(i)

falls within sub-paragraph (1)(b) of that paragraph, and

(ii)

is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.

(2)

No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 6 F4, and that falls within sub-paragraph (1)(a) or (c) of that paragraph, if the amount is designated.

(3)

But such an amount is to be treated for the purposes of section 97(1) of TCGA 1992 (capital payments not to include amounts chargeable to income tax) as if it were chargeable to income tax.

(4)

No liability to income tax arises on an amount of income treated as qualifying overseas capital under paragraph 7 if the amount is designated.

(5)

Accordingly the amount—

(a)

will be a capital payment for the purposes of sections 86A to 96 of, and Schedule 4C to, TCGA 1992 (see section 97(1) of that Act), and

(b)

will, as a result of paragraph 3 or 5 (or both), be qualifying overseas capital.

(6)

Any such qualifying overseas capital is to be treated as having been designated by the individual (under that paragraph or those paragraphs), but no liability to the TRF charge is to arise as a result of that deemed designation.

F5(7)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(8)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)

This paragraph has effect for the tax year 2025-26 and subsequent tax years.

Annotations

Textual amendments

F1: Words in Sch. 10 para. 10(1) renumbered as Sch. 10 para. 10(1)(a) (with effect in accordance with Sch. 3 para. 18(1) of the amending Act) by Finance Act 2026 (c. 11), Sch. 3 paras. 13(1)(a)(i), 18(1)
F2: Words in Sch. 10 para. 10(1)(a) inserted (with effect in accordance with Sch. 3 para. 18(1) of the amending Act) by Finance Act 2026 (c. 11), Sch. 3 paras. 13(1)(a)(ii), 18(1)
F3: Sch. 10 para. 10(1)(b) and word inserted (with effect in accordance with Sch. 3 para. 18(1) of the amending Act) by Finance Act 2026 (c. 11), Sch. 3 paras. 13(1)(a)(iii), 18(1)
F4: Words in Sch. 10 para. 10(2) inserted (with effect in accordance with Sch. 3 para. 18(1) of the amending Act) by Finance Act 2026 (c. 11), Sch. 3 paras. 13(1)(b), 18(1)
F5: Sch. 10 para. 10(7) omitted (retrospective and with effect in accordance with s. 52(4)(b) of the amending Act) by virtue of Finance Act 2026 (c. 11), s. 52(2)(d)(v)(4)(a)
F6: Sch. 10 para. 10(8) omitted (retrospective and with effect in accordance with s. 52(4)(b) of the amending Act) by virtue of Finance Act 2026 (c. 11), s. 52(2)(d)(v)(4)(a)