Double taxation relief

Income and gains arising in another jurisdiction to UK residents may be subject to tax both overseas and in the UK. UK residents may also be subject to UK tax on dividends received from companies which have paid tax overseas.

In order to mitigate this, the UK has entered into a large number of double taxation agreements (DTAs) to reduce the incidence of double taxation. In addition, the UK has legislation to provide unilateral double taxation relief in certain situations where no DTA relief is available. The double taxation relief rules (for both DTA and unilateral relief) are in Part 2 of the Taxation (International and Other Provisions) Act 2010 (TIOPA 2010). Double tax relief is extended to capital gains tax by virtue of TIOPA 2010, s 9(2). Although it has no legal force, there is also guidance to be found in the following HMRC internal manuals: International Manual at INTM160000 onwards, and the Double Taxation Relief Manual at DT1690PP, DT2100 and DT2140PP.

Definition of double taxation

There are two types of double taxation:

•
economic double taxation, which focuses on the continuity

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Private Client weekly highlights—21 November 2024

This week’s edition of Private Client highlights includes: (1) Wigglesworth v Beetson, in which the claimant failed in an action for estoppel and adverse possession; (2) the Hansard Society to host a briefing on parliamentary process for Assisted Dying Bill; (3) Khan v Khan, which considered family property and constructive trusts; (4) analysis of the Autumn Budget announcement to bring unused pension funds and death benefits within the scope of IHT; (5) Palmer v Sans, which found that there was no transaction at an undervalue where property was already held on trust for the transferee; (6) KA v FA (The Secretary of State for the Home Department intervening), where the court recognised an overseas adoption notwithstanding failure of common law test; and (7) Kireeva v Bedzhamov, in which the Supreme Court has confirmed the application of the immovables rule to English property.

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