General Rules For Calculating Income (Info)

Any income arising from outside of the UK shall be taken into account in calculating entitlement to tax credits irrespective of the claimant’s domicile or residence, or the claim of any double taxation agreement, where a claimant or partner is

• Resident in the UK but is not ordinarily resident or domiciled in the UK

Or

• Resident and ordinarily resident but not domiciled in the UK

Follow the guidance in Residency And Immigration Rules.

Taxable income should include any sum that would be taxable if the claimant were resident and ordinarily resident and domiciled in the UK.

This provides that the overseas income of individuals who are resident but not domiciled in the UK for tax purposes shall be taken into account in working out their total income for tax credit purposes, subject to the provisions of the rules governing foreign income.

Follow the guidance in Income Other Than Earnings.

Where the claimant / partner receive income from a territory outside of the UK from which monies cannot be removed, that income should be disregarded in calculating income for tax credit purposes.

Example

Mr J has income from employment in the UK of £18,550, he is also a part owner of a property in Zimbabwe which is rented out. Transfer of Mr J’s money from Zimbabwe is prohibited. The income of Mr J for tax credits purposes is £18,550.