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Legislation
Taxation (International and Other Provisions) Act 2010

Crossheading Limit on credit against corporation tax

  • Section 42 Amount of limit
  • Section 43 Profits attributable to permanent establishments for purposes of section 42(2)
  • Section 44 Credit against tax on trade income
  • Section 45 Credit against tax on trade income: anti-avoidance rules
  • Section 46 Applying section 44(2): asset in hedging relationship with derivative contract
  • Section 47 Applying section 44(2): royalty income
  • Section 48 Applying section 44(2): “portfolio” of transactions, arrangements or assets
  • Section 49 Restricting section 44(3) if company is a bank or connected with a bank
  • Section 49A Limit on credit in cases involving qualifying loan relationships of CFCs
  • Section 49B Applying section 42(2) to non-trading credits from loan relationships etc
  1. Limit on credit against corporation tax
  2. Applying section 44(2): “portfolio” of transactions, arrangements or assets

Section 48 | Applying section 44(2): “portfolio” of transactions, arrangements or assets

From legislation.gov.uk

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

(2)Condition A is that transactions, arrangements or assets are treated by a taxpayer as a series or group (“the portfolio”).

(3)Condition B is that credits for foreign tax arise in respect of the portfolio.

(4)Condition C is that—

(a)it is not reasonably practicable to prepare a separate calculation of income for the purposes of section 44(2) in respect of each transaction, arrangement or asset, or

(b)a separate calculation of income in respect of each transaction, arrangement or asset for the purposes of section 44(2) would not, compared with an aggregated calculation, make a material difference to the amount of credit for foreign tax which is allowable.

(5)The income arising from the portfolio, or part of the portfolio, may be aggregated and apportioned for the purposes of section 44(2) in a just and reasonable manner.

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