The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg.12

Foreign income means income arising, in the year in question, from a source outside the UK or from foreign holdings which is not:

employment income (see TCTM04101)

trading (self-employed) income, (See TCTM04004) or

a taxable gain from an overseas insurer chargeable to income tax under Chapter 9 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA)

Broadly, therefore, for tax credit purposes, ‘foreign income’ means pension, social security, investments and property income arising overseas.

The Tax Credits (Definition and Calculation of Income Regulations 2002, Reg. 12(3)

When calculating foreign income, disregard in full:

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