Section 28 | Unilateral relief for Isle of Man or Channel Islands tax

(1)Subsection (2) applies if the arrangements—

(a)are unilateral relief arrangements for a territory outside the United Kingdom, and

(b)provide for credit to be allowed for tax paid under the law of the Isle of Man (“the Isle of Man tax”).

(2)Credit under section 18(2) against any of the UK taxes for a chargeable period may be allowed for the Isle of Man tax if the person in respect of whose income or chargeable gains the UK tax is payable is—

(a)resident for that period in the United Kingdom, or

(b)resident for that period in the Isle of Man.

(3)Subsection (4) applies if the arrangements—

(a)are unilateral relief arrangements for a territory outside the United Kingdom, and

(b)provide for credit to be allowed for tax paid under the law of any of the Channel Islands (“the Channel Islands tax”).

(4)Credit under section 18(2) against any of the UK taxes for a chargeable period may be allowed for the Channel Islands tax if the person in respect of whose income or chargeable gains the UK tax is payable is—

(a)resident for that period in the United Kingdom, or

(b)resident for that period in any of the Channel Islands.

(5)Each of the following is a UK tax for the purposes of this section—

(a)income tax,

(b)corporation tax, and

(c)capital gains tax.

(6)In subsections (2) and (4) so far as they relate to capital gains tax “chargeable period” means tax year (see section 288(1ZA) of TCGA 1992).