Commentary on Sections Overview Overview Section 38: Credit against tax on royalties: further rules
118.This section supplements section 36 in its application to royalties. It is based on section 798(4) of ICTA.
119.If section 277(1) of TCGA applied to section 798(4) of ICTA, then “royalty income arising in different jurisdictions” would have to be read, in relation to capital gains tax, as “royalty capital gains arising in different jurisdictions”. Even if the expression “royalty capital gains” could have an application, it is not clear how royalty capital gains could “arise” (or even accrue) “in” a particular jurisdiction. Section 798(4) of ICTA therefore has no application to capital gains tax.