Part 3Double taxation relief for special withholding tax
Credit etc for special withholding tax
139Capital gains tax credit etc for special withholding tax
1
Subsection (6) applies if each of conditions A to D is met.
2
Condition A is that a person makes a disposal of assets in a tax year.
3
Condition B is that if a chargeable gain were to accrue on the disposal—
a
the gain would accrue to the person, and
b
the person would be chargeable to capital gains tax in respect of the gain.
4
Condition C is that—
a
the consideration for the disposal consists of, or includes, an amount of savings income, and
b
special withholding tax is levied in respect of the whole, or any part, of the consideration.
5
Condition D is that the person is resident in the United Kingdom for the tax year.
6
On the making of a claim, capital gains tax (“the deemed tax”) is to be—
a
treated as having been paid by or on behalf of the person for the tax year, and
b
treated for the purposes of section 283(2) of TCGA 1992 (repayment supplements: determination of relevant time) as having been paid on the 31 January following the tax year.
7
The amount of the deemed tax is given by section 140.
8
For the purposes of subsection (3)(b), disregard—
a
any deductions that are to be made from the total amount referred to in section 2(2) of TCGA 1992 (deductions for allowable losses), and
b
section 3 of TCGA 1992 (annual exempt amount).