{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-735A",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-735A.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/735A",
  "kind": "section",
  "number": "735A",
  "heading": "Section 735: relevant income and benefits relating to foreign deemed income",
  "text": "(1) For the purposes of section 735—\n(a) place the benefits mentioned in Step 1 in the order in which they were received by the individual (starting with the earliest benefit received),\n(b) deduct from those benefits any benefit so far as—\n(i) chargeable gains (or offshore income gains) are treated as mentioned in section 734(1)(d) as accruing by reference to the benefit,\n(ii) income is treated as mentioned in section 735AG(1)(b) as arising by reference to the benefit under section 643A, 643J or 643L of ITTOIA 2005 (settlements: benefits charge), or\n(iii) income is treated as arising by reference to the benefit under section 732(2) and that income is identified in a foreign income claim,\n(c) place the income mentioned in Step 3 for the tax years mentioned in Step 4 (“the relevant income”) in the order determined under subsection (3),\n(d) deduct from that income any income that may not be taken into account because of section 743(1) or (2) (no duplication of charges),\n(e) place the income treated under section 732(2) as arising to the individual in respect of the benefits in the order in which it is treated as arising (starting with the earliest income treated as having arisen), and\n(f) treat the income mentioned in paragraph (e) as related to—\n(i) the benefits, and\n(ii) the relevant income,\nby matching that income with the benefits and the relevant income (in the orders mentioned in paragraphs (a), (c) and (e)).\n(2) In subsection (1) references to a step are to a step in section 733(1).\n(3) The order referred to in subsection (1)(c) is arrived at by taking the following steps.\nStep 1\nFind the relevant income for the earliest tax year (of the tax years referred to in subsection (1)(c)).\nStep 2\nPlace so much of that income as is not foreign in the order in which it arose (starting with the earliest income to arise).\nStep 3\nAfter that, place so much of that income as is foreign in the order in which it arose (starting with the earliest income to arise).\nStep 4\nRepeat Steps 1 to 3.\nFor this purpose, read references to the relevant income for the earliest tax year as references to the relevant income for the first tax year after the last tax year in relation to which those Steps have been undertaken.\n(4) For the purposes of subsection (3) relevant income is “foreign” where it would be relevant foreign income if it were the individual's.\n(5) For those purposes treat income for a period as arising immediately before the end of the period.\n(6) Subsection (1)(d) does not apply if the income may not be taken into account because a person has been charged to income tax under section 731 by reason of the income.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 735, 735A substituted for s. 735 (with effect in accordance with Sch. 7 para. 170 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 169"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 735A(1)(b) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 43(2), 70(1)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 735A(6) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 43(3), 70(1)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/735A",
    "retrieved_at": "2026-10-29T09:13:03.599581+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."
}