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HMRC internal manual

Employment Income Manual

Termination payments and benefits: Section 401 ITEPA 2003: double taxation: tax credit relief

If a taxpayer is entitled to tax credit relief it will reduce the amount of tax payable on his or her total income for the purpose of calculating his or her marginal rate (see INTM65040).

The local office should submit any claim for tax credit relief that relates to overseas tax suffered on a payment chargeable under Section 401 ITEPA 2003 to CT & VAT.

Include a computation of the liability after giving any threshold, exception and relief provided by Section 401 ITEPA 2003 (see EIM13500) but before calculating any tax credit relief.