Taxation (International and Other Provisions) Act 2010 section 45

Credit against corporation tax on trade income: anti-avoidance

Schedule 9, paragraph 18 sets out the commencement date for the anti-avoidance rule in section 45(2), which restricts foreign tax credits against corporation tax on trade income.

• Section 45(2) contains an anti-avoidance rule that limits the use of foreign tax credits against corporation tax on trade income.
• This anti-avoidance rule only applies to credits for foreign tax that was actually paid on or after 22 April 2009.
• The rule also applies where foreign tax has been deducted at source from income received on or after 22 April 2009.
• Foreign tax payments made, or income received, before 22 April 2009 are not affected by the anti-avoidance provision in section 45(2).