C1Part 2Double taxation relief

Annotations:
Modifications etc. (not altering text)
C1

Pt. 2 modified by 1988 c. 1, Sch. 19ABA paras. 26-28 (as inserted (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. 34(3) (with Sch. 9 paras. 1-9, 22))

CHAPTER 3Miscellaneous provisions

Deduction for foreign tax where no credit allowed

113Deduction from capital gain for foreign tax (instead of credit against UK tax)

1

Subsection (2) applies to tax if it is—

a

chargeable under the law of any territory outside the United Kingdom on the disposal of an asset, and

b

borne by the person making the disposal.

2

The tax is allowable as a deduction in the calculation of the gain.

3

Subsection (2) is subject to—

a

Chapters 1 and 2 so far as they apply for corporation tax purposes (see, in particular, section 31),

b

Chapters 1 and 2 so far as they apply for capital gains tax purposes (see, in particular, section 31), and

c

section 143 (which includes provision about taking account of special withholding tax when calculating a gain for capital gains tax purposes).

4

In subsection (1) “asset” and “disposal” have the same meaning as in TCGA 1992 (see, in particular, section 21 and the following provisions of TCGA 1992).