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HMRC internal manual

International Manual

HM Revenue & Customs
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UK residents with foreign income or gains: capital gains tax: Legislation

Foreign tax credit relief is allowed against UK Capital Gains Tax for foreign tax charged on the same gains, either under the credit Article in a double taxation agreement by TIOPA10/S18(1) or unilaterally by TIOPA10/S9(2).

Prior to TIOPA10 coming into force on 1 April 2010, TCGA92/S277 (1) and (2) provided that:

  1. ICTA88/S788 to ICTA88/S790 and ICTA88/S792 to ICTA88/S806L should apply for the purposes of giving relief for the foreign tax paid on capital gains as if references to capital gains and Capital Gains Tax, respectively, were substituted for reference to income and Income Tax. However from 1 April 2010 TIOPA10 includes separate references to Income and Gains as they are needed.
  2. Agreements made under Section 347, ITA1952, before the 1965 Finance Act, will have effect for Capital Gains Tax if they provide for relief from UK tax on capital gains (TIOPA10/Para 12 Sch 9).