Section 108 Disregard of foreign tax attributable to interest under a loan relationship

(1)

In applying this Part for corporation tax purposes in relation to a company, disregard tax within subsection (2).

(2)

Tax is within this subsection in relation to a company so far as the tax—

(a)

is tax under the law of a territory outside the United Kingdom, and

(b)

is attributable, on a just and reasonable apportionment, to interest accruing under a loan relationship at a time when the company is not a party to the relationship.

(3)

Tax within subsection (2) is not to be disregarded under subsection (1) if the tax is also within section 109 or 110.

Notes on Part 2

Modifications

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))
C2: Pt. 2 applied by 2010 c. 4, s. 269DL(6) (as inserted (with effect in accordance with Sch. 3 Pt. 3 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 1)