Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

International Manual

UK residents with foreign income or gains: claims for double taxation relief against UK tax: time limits

Claims made on or after 1 April 2010

Foreign tax may be paid several years after the same source of income is assessable in the UK. For example, interest within the loan relationship legislation is assessable on the UK recipient as it accrues. If it is not paid until some years later, foreign withholding tax will not be payable until then, yet it can only qualify for relief against the same interest that has been assessed much earlier in the UK.

The previous legislation was at ICTA88/S806, and was amended in TIOPA10/S19. The time limits are now shorter and the new legislation applies:

  • for income tax and capital gains tax purposes, for the tax year 2010/11 onwards, and
  • for corporation tax purposes, for accounting periods ending on or after 1 April 2010.

For income and capital gains tax the claim must be made on or before:

  • the fourth anniversary of the end of the tax year to which the claim relates, or
  • if later, 31 January following the tax year in which the foreign tax is paid.

Example:

Income assessed 2010/11.

If foreign tax on the same source is paid in July 2015, a valid claim can now be made up to 31 January 2017.

For corporation tax the claim must be made not more than:

  • four years after the end of that accounting period, or
  • if later, one year after the end of the accounting period in which the foreign tax is paid.

Example:

Profits assessed for AP ended 31 March 2011.

If foreign tax on the same source is paid in July 2015, a valid claim may be made up to 31 March 2017.

Note

A notice of intention to claim may be accepted, but only provided the claimant agrees to set off against the credit, when computed, any consequential liability to United Kingdom tax which may then be out of date for assessment.

Refer to the Offshore Personal Tax Team (part of Charity, Assets & Residence) in the case of individuals and to Business International, Foreign Profits Team in all other cases any case where a further extension of time is claimed for any reason. These should be very rare. See also INTM167160.

If a claim to credit relief is not made, then relief as a deduction under TIOPA10/S112 is mandatory. However, unless an assessment remains open there is no special provision for reopening assessments to allow relief on this basis outside the usual time limits.

Claims made before 1 April 2010

For income and capital gains tax the claim had to be made on or before:

  • the fifth anniversary of 31 January next following that year of assessment or
  • if later, 31 January next following the year of assessment in which the foreign tax was paid.

Example:

Income assessed 2000/01.

If foreign tax on the same source is paid in July 2008, a valid claim could be made up to 31 January 2010.

For corporation tax the claim had to be made not more than:

  • six years after the end of that accounting period, or
  • if later, one year after the end of the accounting period in which the foreign tax was paid.

Example:

Profits assessed for AP ended 31 March 2001.

If foreign tax on the same source was paid in July 2008, a valid claim could be made up to 31 March 2010.