Taxation (International and Other Provisions) Act 2010 section 60

Underlying tax to be left out of account on claim to that effect

Section 60 allows a UK-resident company claiming double taxation credit relief on a foreign dividend to deliberately exclude specified amounts of underlying tax from its claim.

• When a UK-resident company claims double taxation credit relief on a dividend received from an overseas company, it can choose to exclude certain underlying tax amounts from the claim.
• The company must specify in its claim which amounts of underlying tax it wishes to exclude.
• Any underlying tax amounts excluded in this way are completely disregarded when calculating the credit for underlying tax under section 57.
• This gives the company flexibility to manage its credit relief position by selectively leaving out underlying tax that may not be beneficial to include.