FINANCE ACT 2005 http://www.uk-finance-act-2005.co.uk/s-2FINANCE ACT 2005 RESTRICTED DOUBLE-TAXATION RELIEF- UK Finance Act 2005 introduced two changes which restricted the credit the UK Revenue will permit for foreign tax paid on foreign income. These are: double-taxation relief for trade receipts; and anti-avoidance and double-taxation relief. The first of them is designed to clarify the amount of double taxation relief that is to be given when foreign tax is paid on income that is a trade receipt for UK tax purposes. As the aim of double tax relief is to prevent the imposition of UK taxes resulting in double taxation of the same income, the credit given for the foreign tax paid should not exceed the amount of UK tax due in respect of the income that gave rise to the foreign tax payment. The legislation sets out expenses to be taken into account and expenses to be excluded.http://www.uk-finance-act-2005.co.uk/s-3continue...