Section 27: Credit not allowed if person elects against credit
98.This section allows the taxpayer to elect against credit. It is based on sections 792(1) and 805 of ICTA and section 277(1) of TCGA.
99.In relation to income tax and corporation tax, section 805 of ICTA refers to “the United Kingdom taxes chargeable in respect of any income or chargeable gains”. On a literal interpretation, section 277(1) of TCGA could be taken as requiring this section to refer to “capital” gains in relation to capital gains tax. But, if capital gains tax is chargeable in respect of gains, the gains are “chargeable” gains. This section therefore refers to “chargeable” gains, in relation both to corporation tax and to capital gains tax.