What does Schedule 9 paragraph 17 of TIOPA 2010 do?

Schedule 9 paragraph 17 is a transitional provision that sets the commencement date for Section 34 of TIOPA 2010. It confirms that the rule reducing double taxation credit relief where payments are linked to foreign tax only applies to payments made on or after 22 April 2009, ensuring the rule is not applied retrospectively.

When does the Section 34 credit reduction rule take effect?

The Section 34 credit reduction rule takes effect for payments made on or after 22 April 2009. Any payments made before that date that were linked to foreign tax do not trigger a reduction in a taxpayer's double taxation credit relief under United Kingdom law.

How does Section 34 of TIOPA 2010 reduce double taxation credit relief?

Section 34 reduces double taxation credit relief where a taxpayer receives a payment made by reference to or in connection with foreign tax. This prevents the taxpayer from benefiting twice — once through credit relief against UK tax and again through the related payment linked to that foreign tax.

Are payments made before 22 April 2009 affected by the credit reduction rule?

No. Schedule 9 paragraph 17 explicitly provides that payments made before 22 April 2009 are not subject to the Section 34 credit reduction rule. This transitional provision protects earlier payments from retrospective application, ensuring only payments from that date onward may reduce available credit relief.

Taxation (International and Other Provisions) Act 2010 Schedule 9 para 17

Reduction in credit: payment by reference to foreign tax

Schedule 9 paragraph 17 establishes the commencement date for the rule that reduces double taxation relief credits where payments are made by reference to foreign tax.

Section 34 of the Act provides for a reduction in double taxation credit relief where payments are linked to foreign tax amounts.
This reduction rule only applies to payments made on or after 22 April 2009.
Payments made before 22 April 2009 are not affected by the Section 34 reduction.
This transitional provision ensures the credit reduction rule is not applied retrospectively to earlier payments.

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