Part 5Miscellaneous income
C1F3CHAPTER 2AOffshore receipts in respect of intangible property
Pt. 5 Ch. 2A: power to amend conferred (with effect in accordance with Sch. 3 para. 7 of the amending Act) by Finance Act 2019 (c. 1), Sch. 3 para. 10
Exemptions
608LExemption where foreign tax at least half of UK tax
1
Section 608A does not apply in relation to a person for a tax year if—
a
the person is resident in a territory outside the United Kingdom in that year,
b
the amount of tax (“the local tax amount”) which is paid in the territory in respect of UK-derived amounts arising in the tax year is at least half of the corresponding UK tax, and
c
the local tax amount is not determined under designer tax provisions.
2
See section 608M for provisions about the local tax amount.
3
“The corresponding UK tax” means the amount of income tax that would be charged under this Chapter in respect of UK-derived amounts arising in the tax year, calculated on the following basis—
a
section 608A applies in relation to the UK-derived amounts, and
b
the person is not entitled to any relief or allowance for the tax year.
F24
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F15
For the purposes of this section, section 608D (meaning of residence) applies as if subsections (2)(b), (4) and (5) were omitted.
Pt. 5 Ch. 2A inserted (with effect in accordance with Sch. 3 para. 7 of the amending Act) by Finance Act 2019 (c. 1), Sch. 3 para. 4 (with Sch. 3 para. 8)