Finance Act 2000

SCHEDULE 30 Double taxation relief

Section 103. Power to make treaty provision for matching credit for tax spared in foreign country 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matching credit for tax spared below immediate overseas subsidiary: treaty relief 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matching credit for tax spared below immediate overseas subsidiary: unilateral relief 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Relief for persons resident outside the UK who have branches or agencies in the UK 4 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No double relief etc. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limits on credit: minimisation of the foreign tax 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign tax on amounts underlying non-trading credits 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restriction of relief for underlying tax 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Computation of underlying tax: the relevant profits 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends paid between related companies but not covered by arrangements 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restriction of relief for underlying tax: dividends paid between related companies 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends paid out of transferred profits 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Separate streaming of dividend so far as representing an ADP dividend of a CFC 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UK insurance companies trading overseas: repeal of section 802 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Underlying tax: foreign taxation of group as a single entity 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Life assurance companies with overseas branches etc: restriction of credit 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Allocation of foreign tax to different categories of insurance business 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Allocation of expenses etc in a computation under Case I of Schedule D 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interpretation of sections 804A to 804E 19 (1) After section 804E of the Taxes Act 1988 insert— Interpretation of sections 804A to 804E. 804F Expressions used in sections 804A to 804E and in Chapter I of Part XII have the same meaning in those sections as in that Chapter. (2) The section inserted by sub-paragraph (1)— (a) so far as relating to sections 804A and 804B, has effect in relation to accounting periods beginning on or after 1st April 2000; and (b) so far as relating to sections 804C to 804E, has effect in relation to periods of account beginning on or after 1st April 2000. Time limits for claims for credit relief 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign dividends: onshore pooling and utilisation of certain unrelieved foreign tax 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unrelieved foreign tax: profits of overseas branch or agency 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign tax on amounts underlying non-trading credits 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties: special relationship 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Postponement of capital allowances to obtain double taxation relief 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Time limits where reduction under s.811 rendered excessive or insufficient 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mutual agreement procedure 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restriction of interest on repayment of tax resulting from carry back of relievable tax 29 (1) Amend section 826 of the Taxes Act 1988 as follows. (2) After subsection (7B) insert— (7BB) Subject to subsection (7BC) below, in any case where— (a) within the meaning of section 806D, any relievable underlying tax or relievable withholding tax arises in an accounting period of a company (“the later period”), (b) pursuant to a claim under section 806G, the whole or any part of that tax is treated as mentioned in section 806D(4)(c) or (5)(c) in relation to the single related dividend or the single unrelated dividend arising in an earlier accounting period (“the earlier period”), and (c) a repayment falls to be made of corporation tax paid for the earlier period or of income tax in respect of a payment received by the company in that period, then, in determining the amount of interest (if any) payable under this section on the repayment referred to in paragraph (c) above, no account shall be taken of so much of the amount of the repayment as falls to be made as a result of the claim under section 806G, except so far as concerns interest for any time after the date on which any corporation tax for the later period became due and payable (as mentioned in subsection (7D) below). (7BC) Where, in a case falling within subsection (7A)(a) and (b) above— (a) as a result of the claim under section 393A(1), an amount or increased amount of eligible unrelieved foreign tax arises for the purposes of section 806A(1), and (b) pursuant to a claim under section 806G, the whole or any part of an amount of relievable underlying tax or relievable withholding tax is treated as mentioned in section 806D(4)(c) or (5)(c) in relation to the single related dividend or the single unrelated dividend arising in an accounting period before the earlier period, then subsection (7BB) above shall have effect in relation to the claim under section 806G as if the reference in the words after paragraph (c) to the later period within the meaning of that subsection were a reference to the period which, in relation to the claim under section 393A(1), would be the later period for the purposes of subsection (7A) above. (3) In subsection (7D) (date on which corporation tax is due and payable for the purposes of certain provisions) after “(7B)" insert “ , (7BB) ”. (4) In subsection (7E) (which, for the purposes of certain provisions, restricts the power in section 59A of the Taxes Management Act 1970 to alter the date on which corporation tax is due and payable) after “(7B),", in both places where it occurs, insert “ (7BB), ”. Time limits where deduction under s.278 of the 1992 Act rendered excessive or insufficient 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .