The UK has entered into Double Tax Treaties with various countries. These contain rules which prevent income and gains being taxed
twice, but may include a non-discrimination provision preventing a non-resident individual from being treated less favourably than
a resident individual.
please can you throw more light on the above statement and with an a example please.
Ask the Tutor ACCA TX-UK
The interaction of the UK tax system and overseas tax systems
Overseas aspects of tax are not included in the F6 syllabus above the general concept that governments may enter into a double tax agreement to ensure that the same source of income is not taxed twice ie by both countries. At P6 you will see that if no such agreement exists then a UK taxpayer who has overseas income that has been taxed overseas as well as in the UK will be given double taxation relief as a deduction against his UK liability equal to the lower of his overseas tax or UK tax on this source of income. I repeat however that this only in the P6 exam not the F6 exam.
Sign in to reply to this topic.