Section 34 Reduction in credit: payment by reference to foreign tax
United Kingdom
Subsection (2) applies if—
credit for foreign tax is to be allowed to a person (“P”) under the arrangements, and
a tax authority makes a payment by reference to that tax, and that payment—
is made to P or a person connected with P, or
is made to some other person directly or indirectly in consequence of a scheme that has been entered into.
The amount of that credit is to be reduced by an amount equal to that payment.
Whether a person is connected with P is determined in accordance with section 1122 of CTA 2010.
In subsection (1)(b)(ii) “scheme” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.
Annotations
Textual amendments
- F1
S. 34(1)(b) substituted (with effect in accordance with s. 292(8) of the amending Act) by Finance Act 2014 (c. 26), s. 292(2)
- F2
S. 34(4) inserted (with effect in accordance with s. 292(8) of the amending Act) by Finance Act 2014 (c. 26), s. 292(3)
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)
Notes on Chapter 2
Modifications
- C1
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)