26. Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.
(1) Schedule 24 to the Principal Act is amended -
(a) in paragraph 1 by inserting the following definitions:
"'aggregate income for the tax year' has the same meaning as in section 531AL;
'aggregate of the tax value of the reduction' means the income tax value of the amount by which all income for which credit is to be allowed for foreign tax is treated as reduced in accordance with subparagraph (3) (c) of paragraph 7 ascertained by subtracting the income tax that is chargeable in respect of the year of assessment from the income tax that would be chargeable if all income for which credit is to be allowed for foreign tax had not been reduced in accordance with subparagraph (3) (c) of paragraph 7;",
(b) in paragraph 2 by inserting the following after subparagraph (2):
"(2A) In the case of any income within the charge to income tax, the credit shall be applied first in reducing the income tax chargeable in respect of that income.",
(c) by inserting the following after paragraph 5:
"Limit on total credit - universal social charge.
(1) The amount of the credit to be allowed against universal social charge for foreign tax in respect of any income -