Income Tax (Earnings and Pensions) Act 2003 section 554Z11B

Earlier income tax liability: application of section 554Z11C

Section 554Z11B sets out the conditions that must be met before relief from double taxation under section 554Z11C can apply, where there is more than one unpaid income tax liability relating to the same underlying money or asset provided through a third party.

• Relief under section 554Z11C is available only where there is an overlap between the money or asset involved in a relevant step and money or asset that previously gave rise to an income tax liability
• The earlier income tax liability must still be unpaid (in whole or in part) and not otherwise accounted for at the time the later relevant step is taken
• The liable person must not have agreed any terms with HMRC for discharging that earlier tax liability
• Overlap exists where, on a just and reasonable basis, the money or assets are the same, or the later sum or asset directly or indirectly represents the earlier one