Income Tax Act 2007 section 943C

Calculation of trustees' double tax relief pool

Section 943C explains how to calculate the double tax relief pool for trustees of an unauthorised unit trust (UUT) at the start of each tax year, which feeds into the overall relief available under section 943A(1).

• The pool at the start of a tax year is calculated as A + B − C, where A is the pool at the start of the previous tax year, B is double tax relief claimed by credit in the previous year, and C is the total of foreign elements of deemed deductions made in the previous year.
• If the UUT was established in the current tax year, or it is the first year in which the trustees have been UK resident, the opening pool (A) is treated as nil.
• The calculation ensures the pool reflects relief previously claimed but reduces it by any foreign tax amounts already accounted for through deemed deductions.
• A transitional rule applies for the 2009–10 tax year to determine the opening balance of the pool when these provisions first took effect.