Income Tax Act 2007

[F1 828C The exemption U.K.

(1) The exemption is given by deducting the relevant amount from what would otherwise be the amount of the individual's liability to income tax for the tax year under section 23.

(2) “The relevant amount” is so much of the amount of the individual's liability to income tax as is attributable to the individual's foreign income or gains for the tax year.

(3) But if for the tax year the individual's total income is reduced by any deductions which fall to be made at Step 3 of the calculation in section 23 from the individual's foreign income or gains for the tax year, subsection (2) has effect as if the individual's foreign income or gains for the tax year were reduced by the amount of the deductions.

(4) And if the individual is entitled under—

(a) [F2 sections 2 and 6 of TIOPA 2010] (double taxation arrangements: relief by agreement), or

(b) [F3 section 18(1)(b) and (2)] of that Act (relief for foreign tax where no double taxation arrangements),

to a tax reduction in respect of the individual's foreign income or gains for the tax year, what would otherwise be the relevant amount is reduced by the amount of that reduction.]

Textual Amendments

F1 Pt. 14 Ch. 1A inserted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2009 (c. 10), s. 52(1)

F2 Words in s. 828C(4)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 83(a) (with Sch. 9 paras. 1-9, 22)

F3 Words in s. 828C(4)(b) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 83(b) (with Sch. 9 paras. 1-9, 22)