Finance Act 2007

35 Schemes etc designed to increase double taxation relief U.K.

(1) Section 804ZA of ICTA (schemes and arrangements designed to increase relief) is amended as follows.

(2) In subsection (8)(c), omit “resident in a territory outside the United Kingdom”.

(3) After subsection (11) insert—

“(11A) In this section “foreign tax” includes any tax which for the purpose of allowing credit under any arrangements against corporation tax is treated by section 801 as if it were tax payable under the law of any territory outside the United Kingdom.”

(4) The amendments made by this section have effect in relation to a credit for foreign tax which relates to—

(a) a payment of foreign tax on or after 6th December 2006, or

(b) income received on or after that date in respect of which foreign tax has been deducted at source,

but see also subsections (6) and (7).

(5) In subsection (4)—

(a) references to foreign tax are to be construed in accordance with section 804ZA(11A) of ICTA (as inserted by subsection (3) above), and

(b) the reference to tax deducted at source is to tax deducted (or treated as deducted) from income or treated as paid in respect of income.

(6) The DTR anti-avoidance provisions have effect in relation to any action (or failure to act) that occurs under any scheme or arrangement on or after 6th December 2006 (as well as in relation to the cases mentioned in section 87(3) of FA 2005 or subsection (4) above).

(7) “The DTR anti-avoidance provisions” means section 804ZA of ICTA (as amended by this section), sections 804ZB and 80ZC of that Act and Schedule 28AB to that Act.