In most cases, tax charged by an overseas territory on the profits arising in that territory to a person resident in the UK will be available for tax credit relief, either under an agreement or unilaterally under S18 Taxation (International and Other Provisions) Act 2010 (TIOPA 2010). As to the position where a taxpayer chooses to receive relief by way of a reduction from the overseas income rather than to have credit relief, see INTM161050.

A deduction may be allowed from trading profits for other annual taxes charged on a person resident in the UK in respect of his overseas trading, such as taxes on trade purchases or turnover and social security taxes in respect of employees.

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