193(1)Amend section 796 (limits on credit for foreign tax: income tax) as follows.U.K.
(2)In subsection (1) after “Income Tax Acts” insert “ , except a reduction under section 26 of FA 2005 ”.
(3)After subsection (2) insert—
“(2A)See section 29(2) and (3) of ITA 2007 (tax reductions limited by reference to tax liability) for further limits on the total amount of credit for foreign tax to be allowed to a person against income tax.”
[F1(4)In subsection (3) for “less any income tax which he is entitled to charge against any other person” substitute “less the total amount of the tax treated under section 414 of ITA 2007 (gift aid) as deducted from gifts made by him in that year”.]
[F2(5)[F3Sub-paragraphs (2) and (3) do not] have effect in relation to section 796 as applied by section 277(1) of TCGA 1992 (application of double taxation relief provisions for capital gains purposes).]
Textual Amendments
F1Sch. 1 para. 193(4) substituted (retrospective with effect in accordance with art. 1(2) of the amending S.I.) by The Income Tax Act 2007 (Amendment) (No. 2) Order 2009 (S.I. 2009/2859), art. 4(6)(a)
F2Sch. 1 para. 193(5) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by Income Tax Act 2007 (Amendment) (No.3) Order 2007 (S.I. 2007/3506), arts. 1(1), 3(5)
F3Words in Sch. 1 para. 193(5) substituted (retrospective with effect in accordance with art. 1(2) of the amending S.I.) by The Income Tax Act 2007 (Amendment) (No. 2) Order 2009 (S.I. 2009/2859), art. 4(6)(b)