Taxation (International and Other Provisions) Act 2010 section 82

Conditions for the purposes of section 81(1)

Section 82 sets out the four conditions (A to D) that must all be met before HMRC can issue a counteraction notice to deny or reduce a foreign tax credit claim that arises from a tax avoidance scheme.

• Condition A requires that there is foreign tax for which credit is allowable against UK tax (income tax, corporation tax or capital gains tax) in respect of income or chargeable gains in a particular period.
• Condition B requires that a scheme or arrangement exists whose main purpose, or one of its main purposes, is to cause an amount of foreign tax to be taken into account for the person in that period.
• Condition C requires that the scheme or arrangement falls within the specific descriptions set out in section 83.
• Condition D requires that the total value of the person's own foreign tax credit claims for the period, plus all claims made (or available to be made) by connected persons for any overlapping period, exceeds a minimal amount.