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E6.410 Double tax relief—legislative background

The legislation covering double taxation relief is contained in TIOPA 2010, Pts 2, 3. The legislation in respect of income tax, capital gains tax and corporation tax is in TIOPA 2010, Pt 2, which is divided into three chapters. Chapter 1¹ introduces the principal reliefs, namely:

1. Ìý

   •ÌýÌýÌýÌý relief by agreement with other countries as to the scope of taxation², and

2. Ìý

   •ÌýÌýÌýÌý both treaty credit relief and unilateral credit relief³.

Chapter 1 gives HMRC the power to make regulations for carrying out the provisions of any double taxation agreement⁴. Regulations made under this and the predecessor provisions include the SI 1970/488, which lay down the procedure whereby a person may be authorised to pay certain types of income (including annual interest and UK patent royalties) to a non-resident without deduction of income tax, or after deduction of tax at a lower rate as provided