Section 86 | Limits on credit: income tax and corporation tax: trading profits

(1)Repealed

(2)In section 803 of ICTA (underlying tax reflecting interest on loans)—

(a)Repealed

(b)subsections (4) to (9) shall cease to have effect.

(3)Subsections (1) and (2) shall have effect—

(a)for the purposes of corporation tax, in relation to a credit for foreign tax which relates to—

(i)a payment of foreign tax on or after 16th March 2005, or

(ii)income received on or after that date in respect of which foreign tax has been deducted at source, and

(b)for the purposes of income tax, in relation to a credit for foreign tax which relates to—

(i)a payment of foreign tax on or after 6th April 2005, or

(ii)income received on or after that date in respect of which foreign tax has been deducted at source.

(4)In subsection (3) a reference to tax deducted at source is a reference to tax deducted or treated as deducted from income, or treated as paid in respect of income.

(5)In respect of dividends paid before 1st January 2006, the effect of section 798 or 798A of ICTA in respect of credit for foreign tax shall be disregarded to the extent that it would otherwise reduce the allowable credit to less than 50% of the foreign tax; but this subsection shall not apply to tax paid as part of a scheme or arrangement designed or entered into for the purposes of causing this subsection to apply.