Part 2Double taxation relief
CHAPTER 3Miscellaneous provisions
Deduction for foreign tax where no credit allowed
113Deduction from capital gain for foreign tax (instead of credit against UK tax)
1
Subsection (2) applies to tax if it is—
a
chargeable under the law of any territory outside the United Kingdom on the disposal of an asset, and
b
borne by the person making the disposal.
2
The tax is allowable as a deduction in the calculation of the gain.
3
Subsection (2) is subject to—
a
Chapters 1 and 2 so far as they apply for corporation tax purposes (see, in particular, section 31),
b
Chapters 1 and 2 so far as they apply for capital gains tax purposes (see, in particular, section 31), and
c
section 143 (which includes provision about taking account of special withholding tax when calculating a gain for capital gains tax purposes).
4
In subsection (1) “asset” and “disposal” have the same meaning as in TCGA 1992 (see, in particular, section 21 and the following provisions of TCGA 1992).