Chapter 42 - Double Tax Relief

Question 1

In what circumstance does double tax relief apply?

Answer 1

Where tax is levied on the same income in more than one country

Question 2

Define unilateral relief

Answer 2

Allows for foreign tax to be given as a tax credit in the income tax comp

Question 3

The tax credit is the lower of what?

Answer 3

1. The overseas tax suffered

or

2. The UK tax liability on that income

Question 4

How do you calculate the UK tax on foreign income?

Answer 4

You compare the UK tax liability with and without the foreign income

Question 5

True or false

The foreign tax credit can create a negative liability

Answer 5

False