Finance Act 2010

Foreign tax payable by other participants

5 (1) In section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) as amended by paragraph 2—

(a) in subsection (1), for “for foreign tax” substitute “in respect of the payment of an amount of foreign tax (“the FT amount”)”,

(b) for subsection (2) substitute—

“(2) The condition is that, when C entered into the scheme or arrangement, it could reasonably be expected that the effect on the foreign-tax total of the FT amount being paid or payable would be to increase that total by less than amount X.”, and

(c) in subsection (3)—

(i) for “subsection (2)(b)” substitute “subsection (2)”, and

(ii) in paragraph (b) of the definition of “the foreign-tax total”, omit “by C”.

(2) In section 85A of TIOPA 2010 (schemes involving deemed foreign tax) as inserted by paragraph 4—

(a) in subsection (1)(a), omit “by the claimant”, and

(b) in subsection (4), in the definition of “the foreign-tax total”, omit “by C”.

(3) The amendments made by this paragraph have effect in relation to amounts of foreign tax, or amounts treated as if they were amounts of foreign tax, payable—

(a) as regards corporation tax, on or after 1 April 2010, and

(b) as regards income tax or capital gains tax, on or after 6 April 2010.