Section 113 | Deduction 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).