Taxation (International and Other Provisions) Act 2010 section 140

Provisions about the deemed tax under section 139

Section 140 sets out how to calculate the amount of deemed tax available as a credit against capital gains tax for special withholding tax, and explains what happens when the deemed tax exceeds the capital gains tax liability.

• The deemed tax equals the special withholding tax levied, reduced by any amounts already relieved abroad or already used as deemed tax against income tax under section 137
• If the deemed tax exceeds the person's capital gains tax liability for the year, the excess is first set against any income tax liability for the same year
• Any remaining balance after set-off against both capital gains tax and income tax entitles the person to a repayment of capital gains tax
• For self-assessment purposes, the deemed tax is treated as if it were income tax deducted at source, affecting notification, return and payment obligations under the Taxes Management Act 1970

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