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 2Double taxation relief by way of credit

Limit on credit against corporation tax

48Applying section 44(2): “portfolio” of transactions, arrangements or assets

1

Subsection (5) applies if each of conditions A to C is met.

2

Condition A is that transactions, arrangements or assets are treated by a taxpayer as a series or group (“the portfolio”).

3

Condition B is that credits for foreign tax arise in respect of the portfolio.

4

Condition C is that—

a

it is not reasonably practicable to prepare a separate calculation of income for the purposes of section 44(2) in respect of each transaction, arrangement or asset, or

b

a separate calculation of income in respect of each transaction, arrangement or asset for the purposes of section 44(2) would not, compared with an aggregated calculation, make a material difference to the amount of credit for foreign tax which is allowable.

5

The income arising from the portfolio, or part of the portfolio, may be aggregated and apportioned for the purposes of section 44(2) in a just and reasonable manner.