Section 259B | “Tax” means certain taxes on income and includes foreign tax etc ^F1

From legislation.gov.uk

(1)In this Part “tax” means—^F1

(a)income tax,^F1

(b)the charge to corporation tax on income,^F1

(c)diverted profits tax,^F1

(d)the CFC charge,^F1

(e)foreign tax, or^F1

(f)a foreign CFC charge.^F1

(2)In subsection (1) “foreign tax” means a tax chargeable under the law of a territory outside the United Kingdom so far as it—^F1

(a)is charged on income and corresponds to United Kingdom income tax, or^F1

(b)is charged on income and corresponds to the United Kingdom charge to corporation tax on income.^F1

(3)A tax is outside the scope of subsection (2) if it—^F1F2

(a)is chargeable under the law of a province, state or other part of a country, or^F1

(b)is levied by or on behalf of a municipality or other local body.^F1

(3ZA)A tax is not within paragraph (a) or (b) of subsection (2) so far as it is charged on income that—^F1F3

(a)has arisen to an entity that—^F1F3

(i)is not subject to the tax (as regards that income), and^F1F3

(ii)is, under the law of the territory referred to in that subsection, regarded as being a person for the purposes of the tax, but^F1F3

(b)is to be brought into account for the purposes of that tax by a different entity.^F1F3

(3A)The payment of any withholding tax in respect of any amount is to be ignored for the purposes of this Part.^F1F4

(4)In this Part—^F1

“CFC” and “the CFC charge” have the same meaning as in Part 9A (see section 371VA);

“foreign CFC charge” means a charge (by whatever name known) under the law of a territory outside the United Kingdom which is similar to the CFC charge (and reference to a “foreign CFC” is to be read accordingly).

(5)In any case where—^F1F5

(a)a person is resident in a territory outside the United Kingdom generally for the purposes of the law of the territory or for particular purposes under that law, and^F1F5

(b)the law of the territory has no provision for a person to be resident for tax purposes under its law,^F1F5

any reference in Chapter 8 or 11 to a person's residence for tax purposes in the territory is to be read as a reference to the person's residence as mentioned in paragraph (a).