Taxation (International and Other Provisions) Act 2010 section 104

Interpreting sections 100 and 101: amounts referable to category of business

Section 104 explains how to determine what portion of income or gains relates to a particular category of insurance business, for the purposes of applying the limitations in sections 100 and 101 on double taxation credit relief.

• This section applies when credit for foreign tax is being allowed under double taxation arrangements or unilateral relief arrangements for a territory outside the United Kingdom.
• The portion of income or gains attributable to a particular category of insurance business is determined by using a fraction derived from sections 97 and 97A.
• Sections 97 and 97A are applied to the relevant category of business, the income or gain in question, and the applicable double taxation or unilateral relief arrangements, to find what fraction of the foreign tax is attributable to that category.
• The same fraction that determines the share of foreign tax attributable to a category of business is then used to determine the share of income or gains referable to that category.