Commentary on Sections Overview
23.This Part is based on sections 788, 790 to 806, 806L to 807G, 808A to 811 and 815A to 816 of, and Schedule 28AB to, ICTA, which are concerned with DTR.
24.The United Kingdom’s comprehensive DTAs usually cover not only income tax and corporation tax but also capital gains tax, and may also cover PRT. The opportunity has therefore been taken to rewrite in this Part section 277(1) to (1C), (3) and (4) of TCGA (which apply certain provisions of Part 18 of ICTA (DTR) to capital gains tax) and sections 194(1), (3) and (5) and 195(2) of FA 1993 (which apply sections 788 and 816 of ICTA to PRT). This Part also rewrites section 278 of TCGA (deduction of foreign tax in calculating gains).
25.Section 194(4) of FA 1993 is rewritten as new section 43D of TMA, which is inserted by Schedule 8.
26.Section 808 of ICTA (DTR: restriction on deduction of interest or dividends from trading income) is rewritten in CTA 2010 and repealed. See section 54 of CTA 2010.
27.Section 158 of the Inheritance Tax Act 1984 makes provision for DTAs in relation to inheritance tax. Such DTAs are negotiated separately from the United Kingdom’s comprehensive DTAs. Section 158 is therefore not rewritten.