Section 39 | Credit reduced by reference to accrued income losses

(1)Subsection (5) applies if each of conditions A to C is met.

(2)Condition A is that a person is entitled under section 18(2) to credit against income tax.

(3)Condition B is that the income tax is calculated by reference to income consisting of interest in respect of which the person is entitled under section 679 of ITA 2007 (no income tax on interest so far as matched by accrued income losses) to an exemption from liability to income tax.

(4)Condition C is that—

(a)the arrangements are unilateral relief arrangements for a territory outside the United Kingdom and the credit is allowed as a result of section 9, or

(b)the arrangements are double taxation arrangements and the credit is allowed as a result of the inclusion in the arrangements of any provision corresponding to that section.

(5)The amount of the credit is to be reduced to the amount given by—

(6)Expressions used in this section and in Chapter 2 of Part 12 of ITA 2007 (accrued income profits) have the same meaning in this section as in that Chapter.