Part 2Double taxation relief

CHAPTER 3Miscellaneous provisions

Cases about being taxed otherwise than in accordance with double taxation arrangements

124Giving effect to solutions to cases and mutual agreements resolving cases

(1)Subsections (2) and (4) apply if under, and for the purposes of, double taxation arrangements made in relation to a territory outside the United Kingdom—

(a)a person presents, to the Commissioners for Her Majesty’s Revenue and Customs or to an authority in the territory, a case concerning the person’s being taxed (whether in the United Kingdom or the territory) otherwise than in accordance with the arrangements, and

(b)the Commissioners arrive at a solution to the case or make a mutual agreement with an authority in the territory for the resolution of the case.

(2)The Commissioners are to give effect to the solution or mutual agreement despite anything in any enactment, and any such adjustment as is appropriate in consequence may be made.

(3)An adjustment under subsection (2) may be made by way of discharge or repayment of tax, the allowance of credit against tax payable in the United Kingdom, the making of an assessment or otherwise.

(4)A claim for relief under any provision of—

(a)the Tax Acts,

(b)the enactments relating to capital gains tax, or

(c)the enactments relating to petroleum revenue tax,

may be made in pursuance of the solution or mutual agreement at any time before the end of the period of 12 months following the notification of the solution or mutual agreement to the person affected, even if that involves making the claim after a deadline imposed by another enactment.

125Effect of, and deadline for, presenting a case

(1)This section applies if double taxation arrangements include provision for a person to present a case—

(a)to the Commissioners for Her Majesty’s Revenue and Customs, or

(b)to an officer of Revenue and Customs,

concerning the person’s being taxed otherwise than in accordance with the arrangements.

(2)The presentation of any such case under and in accordance with the arrangements—

(a)does not constitute a claim for relief under the Tax Acts, the enactments relating to capital gains tax or the enactments relating to petroleum revenue tax, and

(b)is accordingly not subject to section 42 of TMA 1970 or any other enactment relating to the making of such claims.

(3)Any such case must be presented before the end of—

(a)the period of 6 years following the end of the chargeable period to which the case relates, or

(b)such longer period as may be specified in the arrangements.