Taxation (International and Other Provisions) Act 2010 section 26

Credit not allowed under arrangements unless taxpayer is UK resident

Section 26 establishes the general rule that double taxation relief by way of credit against UK tax is only available to persons who are UK resident in the relevant period.

• A credit for foreign tax against income tax, corporation tax or capital gains tax is only available if the person whose income or chargeable gains are being taxed is UK resident for the chargeable period in question.
• There are limited exceptions for certain non-UK residents, specifically those covered by unilateral relief provisions (sections 28 to 30), such as individuals or entities operating through a UK branch or agency.
• For capital gains tax purposes, the relevant chargeable period is the tax year.
• The term "UK resident" for capital gains tax purposes takes the same meaning as defined in the Income Tax Act 2007.