Section 38 Credit against tax on royalties: further rules

(1)

Subsection (2) applies if—

(a)

the arrangements are double taxation arrangements, and

(b)

royalties, as defined in the arrangements, are paid in respect of an asset in more than one foreign jurisdiction.

(2)

For the purposes of section 36(2)—

(a)

royalty income arising in more than one foreign jurisdiction in a tax year in respect of the asset is to be treated as a single item of income, and

(b)

credits available for foreign tax in respect of the royalty income are to be aggregated accordingly.

(3)

In this section “foreign jurisdiction” means a jurisdiction outside the United Kingdom.

Notes on Part 2

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)

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)