Section 554Z9 Remittance basis: A did not meet section 26A requirementF1F18F19
United Kingdom
F2Subsections (2) and (2A) apply if—
the value of the relevant step, or a part of it, is “for” a tax year (“the relevant tax year”) as determined under section 554Z4,
section 809B, 809D or 809E of ITA 2007 (remittance basis) F3applied to A for the relevant tax year,
A F5did not meet the requirement of section 26A for the relevant tax year (reading references there to the employee as references to A),
A's employment with B in the relevant tax year F6was employment with a foreign employer, and
the duties of A's employment with B in the relevant tax year F7were performed wholly outside the United Kingdom.
But F9subsections (2) and (2A) do not apply if section 24A applies in relation to A's employment with B for the relevant tax year.
F10Except in a case within subsection (2A), A's employment income by virtue of section 554Z2(1), or the relevant part of it, is “taxable specific income” in a tax year so far as it is remitted to the United Kingdom in that year.
Where the relevant step is within paragraph 1 of Schedule 11 to F(No. 2)A 2017, A's employment income by virtue of section 554Z2(1), or the relevant part of it, is “taxable specific income” in the tax year in which the relevant step is treated as being taken so far as the income is remitted to the United Kingdom in that tax year or in any previous tax year.
For F12the purposes of subsections (2) and (2A), any income which is remitted before A's employment with B starts is treated as being remitted in the tax year in which the employment starts.
Subsection (5) applies if in the relevant tax year—
A has associated employments, and
the duties of the associated employments are not performed wholly outside the United Kingdom.
The amount of A's employment income to which F13subsection (2) or (2A) applies is limited to such amount as is just and reasonable, having regard to—
A's employment income for the relevant tax year from all associated employments, together with A's employment with B,
the proportion of that income F14(or of so much of it as is attributable to the UK part of the relevant tax year, if it was a split year as respects A) which is general earnings to which section 22 applies or is employment income to which section 41A applies,
the nature of and time devoted to the duties performed outside the United Kingdom, and those performed in the United Kingdom, in the relevant tax year F15(or the UK part of it), and
all other relevant circumstances,
and, if the amount of A's employment income to which F16subsection (2) or (2A) would otherwise apply exceeds that limit, the amount of A's employment income to which F17subsection (2) or (2A) (as the case may be) applies is instead to be such amount as is just and reasonable.
In this section “associated employments” means employments with B or with employers associated with B; and section 24(5) and (6) applies for the purposes of this subsection.
Annotations
Textual amendments
- F1
Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1
- F2
Words in s. 554Z9(1) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(2)
- F3
Word in s. 554Z9(1)(b) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(11)(b)(i)
- F4
S. 554Z9(1)(c) substituted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 13(1) (with Sch. 46 para. 26)
- F5
Words in s. 554Z9(1)(c) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(11)(b)(ii)
- F6
Word in s. 554Z9(1)(d) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(11)(b)(iii)
- F7
Word in s. 554Z9(1)(e) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(11)(b)(iv)
- F8
S. 554Z9(1A) inserted (with effect in accordance with Sch. 3 para. 7(4) of the amending Act) by Finance Act 2014 (c. 26), Sch. 3 para. 5
- F9
Words in s. 554Z9(1A) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(3)
- F10
Words in s. 554Z9(2) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(4)
- F11
S. 554Z9(2A) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(5)
- F12
Words in s. 554Z9(3) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(6)
- F13
Words in s. 554Z9(5) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(7)(a)
- F14
Words in s. 554Z9(5)(b) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 70(a)
- F15
Words in s. 554Z9(5)(c) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 70(b)
- F16
Words in s. 554Z9(5) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(7)(b)(i)
- F17
Words in s. 554Z9(5) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 40(7)(b)(ii)
- F18
Words in s. 554Z9 heading substituted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 13(2) (with Sch. 46 para. 26)
- F19
Words in s. 554Z9 heading substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(11)(a)
Notes on Part 7A
Modifications
- C1
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 35(6)
- C2
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 1(8)
- C3
Pt. 7A modified (22.7.2020) by 2017 c. 32, Sch. 11 para. 1A(2)(6) (as inserted by Finance Act 2020 (c. 14), s. 16(3))