(1) A tax residency double deduction mismatch outcome shall arise where -
(a) there is, or but for this section would be, a double deduction arising in respect of a payment, to the extent the amount of the deduction is not, or would not be, deductible against dual inclusion income, and
(b) the satisfaction of the condition described in paragraph (a) is attributable to the company being within the charge to both corporation tax and foreign tax.
(2) Subject to subsection (3), a tax residency double deduction mismatch outcome shall be neutralised -
(a) where the other territory within which the company is subject to a charge to tax is a Member State, with the government of which arrangements having the force of law by virtue of section 826(1) have been made, and under those arrangements the company is tax resident in that Member State,
(b) where -
(i) the other territory within which the company is subject to a charge to tax is not a Member State, and
(ii) under arrangements, having the f
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