Commentary on Sections Overview Overview Section 63: Non-UK company dividend paid to 10% investor: relief for UK and other tax
167.This section provides, if the appropriate conditions are met, for certain other taxes to be treated as underlying tax, namely taxes which are (a) payable in respect of the profits of the company paying the dividend and (b) not imposed in the jurisdiction in which that company is resident. It is based on sections 792(2) and 801(1), (1A) and (5) of ICTA.
168.Subsection (5)(a) does not mention capital gains tax payable by the overseas company, because companies resident outside the United Kingdom are outside the scope of capital gains tax.
169.In the italicised cross-heading before this section, “tax...that is not foreign tax” is to be read in accordance with section 21(1) and therefore includes third country tax within subsection (5)(b).