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Taxation (International and Other Provisions) Act 2010

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Changes over time for: Cross Heading: Limit on credit against capital gains tax

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Point in time view as at 15/09/2016.

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There are currently no known outstanding effects for the Taxation (International and Other Provisions) Act 2010, Cross Heading: Limit on credit against capital gains tax. Help about Changes to Legislation

Limit on credit against capital gains taxU.K.

40Amount of limitU.K.

(1)This section is about the amount of credit allowed under section 18(2) against a person's capital gains tax for any tax year.

(2)The amount of credit in respect of any particular capital gain must not exceed the difference between—

(a)the amount of capital gains tax to which the person would be liable for the tax year if the person were charged to capital gains tax on—

and

(b)the amount of capital gains tax to which the person would be liable for the tax year if the person were charged to capital gains tax on—

(3)If credit is allowed (whether or not under the same tax-relief arrangements) in respect of more than one capital gain, apply subsection (2) successively to each capital gain, taking the gains in the order which will result in the greatest reduction in the person's capital gains tax liability for the tax year.

(4)In subsection (2)—

  • TG is the total amount of the chargeable gains accruing to the person in the tax year,

  • X is the total amount of the gains (if any) to which subsection (2) has already been applied, and

  • C is the amount of the gain in respect of which the credit is to be allowed.

(5)The rules for calculating an amount of capital gains tax under subsection (2) are—

(a)the calculation is to be made in accordance with sections 31 and 32, and

(b)no credit is to be allowed for foreign tax.

(6)For the purposes of subsection (3) the following are “tax-relief arrangements”—

(a)double taxation arrangements, and

(b)unilateral relief arrangements for a territory outside the United Kingdom.

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