Income tax at the basic rate, F1or the F2starting rate for savings F3when that rate is more than 0%, F4... is not charged under section 720 or 727 in respect of any income F5if (and to the corresponding extent that) the income mentioned in section 721(2) or 728(1)(a) has borne tax at that rate by deduction or otherwise.

Income tax at a Scottish rate above 0% and below, or equal to, the basic rate is not charged under section 720 or 727 in respect of any income if (and to the corresponding extent that) the income mentioned in section 721(2) or 728(1)(a) has borne tax at the basic rate.

Income tax at the Welsh basic rate when that rate is above 0% and below, or equal to, the basic rate is not charged under section 720 or 727 in respect of any income if (and to the corresponding extent that) the income mentioned in section 721(2) or 728(1)(a) has borne tax at the basic rate.

F8Subsections (1) F9, (1A) and (1B) do not affect the tax charged if section 724(2) applies (benefit provided out of income of person abroad charged in year of receipt).

Subsection (4) applies to income treated as arising to an individual under section 721 or 728 so far as F11none of subsections (1), (1A) and (1B) applies to it.

The charge to income tax under section 720 or 727 operates by treating the income as if it were income within section 19(2) (meaning of “dividend income”) if the income mentioned in section 721(2) or 728(1)(a) would be dividend income were it the income of the individual.