{
  "url": "https://openlegislation.uk/finance-act-2025/schedule-10/paragraph-2",
  "json_url": "https://openlegislation.uk/finance-act-2025/schedule-10/paragraph-2.json",
  "legislation": "ukpga/2025/8",
  "legislation_title": "Finance Act 2025",
  "legislation_url": "https://openlegislation.uk/finance-act-2025",
  "path": "schedule/10/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": "Qualifying overseas capital: main cases",
  "text": "(1) An amount of capital is “qualifying overseas capital” of an individual if it falls within sub-paragraph (2), (5) or (8).\n(2) An amount of capital falls within this sub-paragraph if—\n(a) it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,\n(b) the amount has not been remitted to the United Kingdom, and\n(c) the amount, if remitted to the United Kingdom, would have the effect mentioned in sub-paragraph (3)(a) or (b).\n(3) That effect is that—\n(a) the individual becomes chargeable to income tax by reference to the amount remitted in accordance with section 22, 26, 41F, 554Z9 or 554Z10 of ITEPA 2003 or section 832 of ITTOIA 2005 (income charged on remittance basis), or\n(b) a gain is treated as accruing to the individual by reference to the amount remitted in accordance with paragraph 1(2) of Schedule 1 to TCGA 1992 (gains charged on remittance basis).\n(4) In determining whether an amount of capital falls within sub-paragraph (2) for the purposes of making a designation election for a tax year, the condition in sub-paragraph (2)(b) is to be regarded as met if it was met at the end of that tax year.\n(5) An amount of capital falls within this sub-paragraph if—\n(a) it is an amount that arose in the tax year 2024-25 or an earlier tax year as income or as a gain,\n(b) the amount is remitted to the United Kingdom in the tax year 2025-26, 2026-27 or 2027-28, and\n(c) that remittance has the effect mentioned in sub-paragraph (3)(a) or (b).\n(6) An amount that is qualifying overseas capital falling within sub-paragraph (5) (and that has not previously been designated as result of the amount falling within sub-paragraph (2)) may only be designated in a designation election for the tax year in which it was remitted.\n(7) For the purposes of sub-paragraphs (2)(c) and (5)(c), a remittance is to be treated as having the effect mentioned in sub-paragraph (3)(a) or (b) if it would have that effect ignoring—\n(a) Part 2 of this Schedule (exemptions etc for designated qualifying overseas capital),\n(b) section 809VA of ITA 2007 (business investment relief), and\n(c) section 809X of that Act (exempt property).\n(8) An amount of capital falls within this sub-paragraph if—\n(a) it does not fall within sub-paragraph (2) or (5),\n(b) it was held by the individual immediately before 6 April 2025,\n(c) it was situated outside the United Kingdom—\n(i) immediately before it was most recently acquired by the individual before that date, and\n(ii) throughout the period beginning with the time referred to in sub-paragraph (i) and ending with that date.\n(9) References in Parts 1 and 2 of this Schedule to amounts being remitted to the United Kingdom are to be construed in accordance with Chapter A1 of Part 14 of ITA 2007 (see, in particular, sections 809L to 809O of that Act).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2025/8/schedule/10/paragraph/2",
    "retrieved_at": "2026-10-29T08:47:01.939707+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}