Taxation (International and Other Provisions) Act 2010 section 74

Rules for carrying back unrelieved foreign tax

Section 74 sets out the ordering rules that apply when unrelieved foreign tax is carried back to earlier accounting periods under the carry-back provisions of section 73.

• Unrelieved foreign tax must be carried back to the most recent eligible earlier period first, before being applied to any earlier period within the permitted window.
• Only accounting periods that begin no more than three years before the period in which the excess arose are eligible to receive carried-back credit.
• When applying credit to any particular earlier period, priority is given first to the foreign tax that originally relates to that period's own income.
• After that period's own foreign tax is credited, any foreign tax carried forward from periods before that particular period is credited next, before any carried-back amounts are applied.