If an individual has income or gains from a source in one country and is resident in another, that same income or gain may suffer tax twice. Double tax relief (also known as DTR) is designed to alleviate this double charge on the same source of income or gain.
The UK provides three options for providing relief from double taxation—two via a form of tax credit and one by way of deduction from the foreign income or gain.
Of the two forms that provide relief via a tax credit, one is called 'unilateral relief' which is provided under UK domestic legislation and the other is provided through double tax treaties with other countries (known as 'treaty relief', see UK1.8.1).
Credit relief is only available
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Web page updated on 28 Aug 2024 11:48