Section 42 | Abolition of notional tax credit on distributions received by non-UK residents

(1)Omit section 399 of ITTOIA 2005 (tax treated as paid on distributions received by non-UK resident persons).

(2)In ITA 2007—

(a)in section 425 (total amount of income tax to which individual charged for a tax year), in subsection (5)(a), omit sub-paragraph (i);

(b)in section 1026 (meaning of “non-qualifying income”), omit paragraph (a).

(3)In TMA 1970—

(a)in section 9 (returns to include self-assessment), in subsection (1), in the closing words, omit “or section 399(2)”;

(b)in section 59B (payment of income tax and capital gains tax), in subsection (1), in the closing words, omit “or section 399(2)”.

(4)In the Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I.‌ 2013/2819), in regulation 12 (treatment of income of an exempt unauthorised unit trust), omit paragraph (3)(b).

(5)The amendments made by this section have effect for the tax year 2026-27 and subsequent tax years.