Income Tax (Earnings and Pensions) Act 2003 section 679

Taxable social security income

Section 679 establishes how foreign social security benefits are measured for tax purposes and confirms that such income is treated as relevant foreign income, potentially qualifying for the remittance basis and other reliefs.

• The taxable amount of a foreign social security benefit for a tax year is the full amount of the social security income arising in that year
• This income is treated as relevant foreign income, which means the remittance basis of taxation may apply where the taxpayer is eligible
• Deductions and reliefs available for relevant foreign income under ITTOIA 2005 also apply to these benefits
• Additional relief may be available where the income cannot be remitted to the United Kingdom (unremittable income provisions)