Taxation (International and Other Provisions) Act 2010 section 124

Giving effect to solutions to cases and mutual agreements resolving cases

Section 124 sets out how HMRC must implement solutions or mutual agreements reached under double taxation arrangements when a person has been taxed inconsistently with those arrangements.

• Where a person raises a case under a double taxation arrangement because they have been taxed contrary to the arrangement, and HMRC reaches a solution or mutual agreement, HMRC must give effect to that solution or agreement regardless of any other legislation.
• The necessary adjustments can take various forms, including discharging or repaying tax, allowing a credit against UK tax, making an assessment, or any other appropriate method.
• Any claim for relief under the Tax Acts, capital gains tax legislation, or petroleum revenue tax legislation may be made within 12 months of the person being notified of the solution or mutual agreement, even if normal statutory deadlines have passed.
• This section also applies in relation to diverted profits tax by virtue of section 114A of the Finance Act 2015.