Section 85A Section 83(2) and (4): schemes involving deemed foreign taxF1

This section applies to a scheme or arrangement if in relation to a claimant—

Condition A is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement, no real foreign tax would be paid or payable by a participant.

Condition B is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement—

In this section—

• “ claimant ” means a person who for a chargeable period has claimed, or is in a position to claim, for any credit that under the arrangements is to be allowed for foreign tax;

• “ the foreign-tax total ” has the meaning given by section 85(3), except that the reference to “the FT amount being paid or payable F3by C” must be read as a reference to “the RFT amount being paid or payable by any of them”;

• “ income ” includes a chargeable gain;

• “ participant ” means a person who is party to, or concerned in, the scheme or arrangement;

• “ real foreign tax ” means—

  1. (a)

     in a case involving section 10 (accrued income profits), the foreign tax chargeable in respect of the interest on the securities, as mentioned in subsection (1)(c) of that section,

  2. (b)

     F4...

  3. (c)

     in any other case, the foreign tax chargeable in respect of the source of income of which the source mentioned in subsection (1)(a) is representative.