The provisions in this article apply only to companies where an election has not been made for exemption for the profits of a foreign permanent establishment (D4.801A). For details of the double tax relief provisions that generally apply see Division E6.4.
For UK resident companies, any unrelieved foreign tax can be carried back or forward if it arises in respect of any of the company's qualifying income from an overseas permanent establishment of the company1.
Qualifying income is defined as the profits of an overseas permanent establishment (which are chargeable to tax under CTA 2009, ss 35–45 (Pt 3, Ch 2)).
An amount of unrelieved foreign tax is treated as arising where the amount of the credit for foreign tax which would (were it not for the UK DTR rules) be allowable against the UK corporation tax liability on that income exceeds the amount of credit for foreign tax which is actually allowed against the UK corporation tax liability on that income2. For example, unrelieved foreign tax can
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