Taxation (International and Other Provisions) Act 2010 section 135

Relief under this Part: introductory

Section 135 introduces the rules for giving relief from double taxation where special withholding tax has been suffered.

• Part 3 of the Act provides relief from double taxation in respect of special withholding tax, with the exception of sections 144 and 145 which deal separately with certificates issued by HMRC to prevent the levy of special withholding tax abroad.
• Relief is given primarily by way of set-off against the taxpayer's income tax or capital gains tax liability.
• Where the relief cannot be fully used as a set-off against income tax or capital gains tax, the remainder is given by way of repayment to the taxpayer.
• This two-stage mechanism ensures that taxpayers are not left bearing the cost of both UK tax and foreign special withholding tax on the same income or gains.