Taxation (International and Other Provisions) Act 2010 section 11

Rule 3: interaction between double taxation arrangements and rules 1 and 2

Section 11 establishes the priority of double taxation treaties over unilateral tax credit relief, ensuring that taxpayers cannot claim credit twice for the same foreign tax.

• Where a double taxation treaty with a territory already allows credit for foreign tax on particular income or gains, no additional credit can be claimed under the unilateral relief rules in sections 9 or 10
• If credit for a specific amount of foreign tax may be allowed under a double taxation treaty, that same tax cannot also be credited under sections 9 or 10
• Where a double taxation treaty expressly excludes credit relief in specified cases or circumstances, unilateral credit relief under sections 9 or 10 is likewise blocked in those same cases or circumstances
• The overall effect is to prevent any overlap or double benefit between treaty-based relief and unilateral relief for the same foreign tax