SE32665 - Corresponding payments: procedure

Section 192(3) ICTA 1988

To obtain a deduction, the employee has to make a claim to the Board. The procedure provided by Section 42 and Section 43 TMA 1970 for making claims and resolving disputes applies (see RE10 onwards).

In practice you can make deductions in computing the amount of the foreign emoluments provided you observe the instructions at SE32671 - SE32681.

Deduction at the discretion of the Board

The power given to the Board by Section 192(3) is discretionary.

Treatment when payments could have been made out of other income

The Board has decided that, if the payments could have been made out of any other overseas income, net of any overseas tax, no deduction will be given for the following:

• alimony and maintenance payments under a foreign court order (see SE32675) or
• interest under a foreign loan agreement (see SE32675).

Thus in both these cases you need to be satisfied:

• that the payments have been made out of the foreign emoluments and
• the payments could not have been made out of other overseas income not chargeable to United Kingdom Income Tax.

Further advice

If an employee persists with a claim where either of these conditions is not satisfied, send the claim with the file to Employment Income Technical.