# Taxation (International and Other Provisions) Act 2010, Section 34: Reduction in credit: payment by reference to foreign tax

Extent: E+W+S+N.I.

(1) Subsection (2) applies if—
(a) credit for foreign tax is to be allowed to a person (“P”) under the arrangements, and
(b) a tax authority makes a payment by reference to that tax, and that payment—
(i) is made to P or a person connected with P, or
(ii) is made to some other person directly or indirectly in consequence of a scheme that has been entered into.
(2) The amount of that credit is to be reduced by an amount equal to that payment.
(3) Whether a person is connected with P is determined in accordance with section 1122 of CTA 2010.
(4) 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.

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Source: https://www.legislation.gov.uk/ukpga/2010/8/section/34 (the official version)
Page: https://openlegislation.uk/taxation-international-and-other-provisions-act-2010/section-34
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.