Part 2Double taxation relief
CHAPTER 2Double taxation relief by way of credit
Exceptions to requirement to be UK resident
29Unilateral relief for tax on income from employment or office
1
Subsection (3) applies if the arrangements are unilateral relief arrangements for a territory outside the United Kingdom.
2
In subsection (3) “overseas tax” means tax—
a
paid under the law of the territory,
b
charged on income and corresponding to income tax or to corporation tax, and
c
calculated by reference to income from an office or employment the duties of which are performed wholly or mainly in the territory.
3
Credit for overseas tax may be allowed under section 18(2) against income tax for a tax year—
a
calculated by reference to that income, and
b
charged on employment income,
if the person performing the duties is resident in the United Kingdom, or resident in the territory, for that year.
4
For the purposes of subsection (2)(b) tax may correspond to income tax or corporation tax even though it—
a
is payable under the law of a province, state or other part of a country, or
b
is levied by or on behalf of a municipality or other local body.