What taxes are covered by double taxation arrangements under section 6 of TIOPA 2010?

Section 6 of TIOPA 2010 provides that double taxation arrangements cover income tax, corporation tax, capital gains tax and petroleum revenue tax. However, the scope for petroleum revenue tax is limited to relief from charges under section 12 of the Oil Taxation Act 1983. Special withholding tax is expressly excluded from DTA relief under this chapter.

Do double taxation arrangements override UK domestic tax legislation?

Yes, double taxation arrangements take effect despite anything in any other UK tax legislation. This means a DTA will generally prevail over domestic tax rules where it provides for a particular treatment. However, this overriding effect is itself subject to certain limits set out elsewhere in the Taxation (International and Other Provisions) Act 2010.

Is relief under a double taxation arrangement given automatically in the UK?

No, relief from income tax, corporation tax, capital gains tax or petroleum revenue tax under a DTA is not automatic. A formal claim must be made. This claim should be submitted in a tax return, by amending a return, or made directly to HMRC. Without a valid claim, the relief will not be granted.

How do double taxation arrangements affect non-UK residents with UK-source income or gains?

DTAs can impose UK tax on income arising in the UK that belongs to non-UK residents and on chargeable gains from disposals of UK assets. They can also determine how income or gains are attributed to non-UK residents, their UK agencies, branches or establishments, or to UK residents with special relationships to non-UK residents.

Taxation (International and Other Provisions) Act 2010 section 6

The effect given by section 2 to double taxation arrangements

Section 6 sets out the scope and practical effect of double taxation arrangements (DTAs) in relation to UK taxes, specifying which taxes are covered and what the arrangements can do.

Double taxation arrangements override other UK tax legislation and cover income tax, corporation tax, capital gains tax and petroleum revenue tax, but only within defined limits.
For income tax and corporation tax, the arrangements can provide relief, tax non-UK residents on UK-source income or gains, and determine how income or gains are attributed to non-UK residents, their UK branches, or UK residents with special relationships to non-UK residents.
For capital gains tax, parallel rules apply covering relief, taxation of non-UK residents on disposals of UK assets, and attribution of gains to non-UK residents, their UK branches, or connected UK residents.
Relief from tax under a DTA is not automatic — a formal claim must be made, and DTA relief under this chapter does not extend to special withholding tax.

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