Section 82 | Conditions for the purposes of section 81(1)

(1)Conditions A to D are the conditions mentioned in section 81(1).

(2)Condition A is that, in respect of any income or chargeable gain—

(a)taken into account for the purposes of determining a person's liability to UK tax in a chargeable period, or

(b)to be taken into account for the purposes of determining a person's liability to UK tax in a chargeable period,

there is an amount of foreign tax for which, under the arrangements, credit is allowable against UK tax for the period.

(3)Condition B is that there is a scheme or arrangement the main purpose of which, or one of the main purposes of which, is to cause an amount of foreign tax to be taken into account in the person's case for the period.

(4)Condition C is that the scheme or arrangement is within section 83.

(5)Condition D is that T is more than a minimal amount, where T is the sum of—

(a)the total amount of the claims for credit that the person has made, or is in a position to make, for the period (“the counteraction period”), and

(b)the total amount of all connected-person claims.

(6)In subsection (5) “connected-person claim” means a claim that any person connected to the person has made, or is in a position to make, for any chargeable period that overlaps the counteraction period by at least one day.

(7)In this section—

“chargeable period”, in relation to capital gains tax, means tax year (see section 288(1ZA) of TCGA 1992),

“foreign tax” includes any tax which for the purpose of allowing credit under the arrangements against corporation tax is treated by section 63(5) as if it were tax payable under the law of the non-UK territory, and

“UK tax” means income tax, corporation tax or capital gains tax.

(8)Section 286 of TCGA 1992 (meaning of “connected”) applies for the purposes of subsection (6) so far as applying in relation to capital gains tax.