Income Tax Act 2007 section 590

Meaning of "relevant withholding tax"

Section 590 defines the term "relevant withholding tax" as used in the chapter dealing with double taxation relief on certain types of income.

• This section provides a definition of "relevant withholding tax" for the purposes of the wider chapter on double taxation relief.
• Relevant withholding tax refers to tax deducted at source in a foreign country on income such as interest, royalties, or dividends before the recipient receives the payment.
• The definition is important because it determines which foreign taxes qualify for relief against UK income tax under these provisions.
• The section was derived from earlier legislation (Schedule 23A to ICTA) and has been amended by Finance Act 2013.