Section 28 | Order of deducting tax reductions: other persons

(1)This section makes provision about the order in which tax reductions are to be deducted at Step 6 of the calculation in section 23, if the taxpayer is a person other than an individual.

(2)Deduct the tax reductions in the order which will result in the greatest reduction in the taxpayer's liability to income tax for the tax year.

(3)Subsection (2) is subject to subsections (4) and (5).

(4)If the taxpayer is entitled to a tax reduction under—

(a)sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or

(b)section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements),

that tax reduction must be deducted after any other tax reduction to which the taxpayer is entitled for the tax year, subject to subsection (5).

(5)If the taxpayer is a trustee and is entitled to a tax reduction under section 26 of FA 2005 (trusts with vulnerable beneficiary: income tax relief) that tax reduction must be deducted after any other tax reduction to which the taxpayer is entitled for the tax year.