PART XVIII DOUBLE TAXATION RELIEF
CHAPTER II RULES GOVERNING RELIEF BY WAY OF CREDIT
F1 Application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere
806K Application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere.
(1)
Sections 806A to 806J shall apply in relation to an amount of eligible unrelieved foreign tax arising in a chargeable period in respect of any of the income of a branch or agency in the United Kingdom of a person resident outside the United Kingdom as they apply in relation to eligible unrelieved foreign tax arising in an accounting period of a company resident in the United Kingdom in respect of any of the company’s income, but with the modifications specified in subsection (2) below.
(2)
Those modifications are—
(a)
take any reference to an accounting period as a reference to a chargeable period;
(b)
take any reference to corporation tax as including a reference to income tax;
(c)
take the reference in section 806A(4)(a) to section 797 as a reference to sections 796 and 797;
(d)
in relation to income tax, for subsection (2) of section 806B substitute the subsection (2) set out in subsection (3) below.
(3)
That subsection is—
“(2)
In Case A, the difference between—
(a)
the amount of the credit allowed as mentioned in section 806A(4)(b), and
(b)
the greater amount of credit that would have been so allowed if, for the purposes of section 796, the amount of income tax borne on the dividend as computed under that section were charged at a rate equal to the upper percentage,
shall be an amount of eligible unrelieved foreign tax. ".