Taxation (International and Other Provisions) Act 2010 section 259JC

Counteraction where mismatch arises because of a relevant multinational and the UK is the parent jurisdiction

Section 259JC restricts the UK corporation tax deduction available to a relevant multinational company where the UK is the parent jurisdiction, and the same deduction is also being claimed overseas against income that is not taxed in both territories.

• Where a dual territory double deduction arises for a relevant multinational company and the UK is the parent jurisdiction, the UK deduction is reduced if the amount is also deducted overseas against non-dual inclusion income
• The reduction equals the "impermissible overseas deduction" — the portion of the dual territory double deduction that is deducted abroad from income of any person that is not dual inclusion income of the company
• HMRC or the company may make adjustments to give effect to the restriction by assessment, amendment or disallowance of claims, even if normal time limits have expired
• Dual inclusion income is income that is treated as ordinary income of the company both for UK corporation tax purposes and for the purposes of an overseas tax within a permitted taxable period

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