Taxation (International and Other Provisions) Act 2010 section 127

Giving effect to agreements, decisions and opinions under the Convention

Section 127 provides the mechanism by which HMRC must implement determinations made under the EU Arbitration Convention to eliminate double taxation between EU member states.

• A "Convention determination" is either an agreement or decision made by HMRC (or their representative) with another country's tax authority, or an opinion delivered by an advisory commission, both made under the Arbitration Convention to eliminate double taxation.
• Where the Arbitration Convention requires HMRC to give effect to such a determination, HMRC must do so regardless of any conflicting UK legislation, and may make whatever adjustments are needed as a consequence.
• Adjustments can take various forms, including repaying tax, discharging a tax liability, allowing a credit against UK tax, raising an assessment, or any other appropriate method.
• Normal statutory time limits for making claims for tax relief do not apply to claims made as a result of a Convention determination.