Finance Act 2010

Effect of foreign tax becoming payable U.K.

1 (1) Paragraph 3 of Schedule 28AB to ICTA (schemes about effect of paying foreign tax) is amended as follows. U.K.

(2) In sub-paragraph (2)—

(a) in paragraph (a), after “paid” insert “ or payable ”, and

(b) in paragraph (b), for “of the payment of that amount of foreign tax on the foreign tax total” substitute “ on the foreign tax total of that amount being so paid or payable ”.

(3) In sub-paragraph (3)(b), for “the payment by the claimant of that amount of foreign tax” substitute “ that amount of foreign tax being paid or payable by the claimant ”.

2 (1) Section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) is amended as follows. U.K.

(2) In subsection (2)—

(a) for paragraph (a) substitute—

“(a) an amount of foreign tax (“the FT amount”) is paid or payable by C, and”, and

(b) in paragraph (b), for “of the payment of the FT amount on the foreign-tax total” substitute “ on the foreign-tax total of the FT amount being so paid or payable ”.

(3) In subsection (3), in paragraph (b) of the definition of “the foreign-tax total”, for “the payment by C of the FT amount” substitute “ the FT amount being paid or payable by C ”.

3 (1) The amendments made by paragraphs 1 and 2 have effect in relation to amounts of foreign tax payable on or after 21 October 2009. U.K.

(2) But see paragraph 5 for amounts of foreign tax payable on or after 1 April 2010 (as regards corporation tax) or 6 April 2010 (as regards income tax or capital gains tax).