809YD Chargeable gains accruing on sales of exempt property
(1) This section applies to an individual (“P”) if—
(a) a chargeable gain (but not a loss) accrues to a person on a sale of exempt property,
(b) but for section 809YA, section 809Y(1) would have applied to the property by virtue of the sale, and
(c) P is either—
(i) the person to whom the gain accrues, or
(ii) a person to whom a part of the gain is treated as accruing under section 3 of TCGA 1992 (members of non-resident companies).
(2) The relevant UK gain is to be treated for the purposes of this Chapter as if—
(a) it were a foreign chargeable gain of P, and
(b) in the case of section 809E, it were not part of P's UK income and gains.
(3) Accordingly, if section 809F applies to P for the applicable tax year ..., the relevant UK gain is charged in accordance with paragraph 1 of Schedule 1 to TCGA 1992 as if it were a foreign chargeable gain.
(4) The relevant UK gain is—
(a) in a case falling within subsection (1)(c)(i), the gain accruing to P,
(b) in a case falling within subsection (1)(c)(ii), the part of the gain treated as accruing to P.
(5) The applicable tax year is —
(a) if section 1M of TCGA 1992 (temporary non-residents) applies in P's case and the relevant UK gain is within subsection (2) of that section, the tax year that consists of or includes the period of return as defined in that section,
(b) otherwise, the tax year in which the relevant UK gain accrues.
(6) In applying this Chapter to the relevant UK gain—
(a) treat the amount of any gains mentioned in section 809Q(4)(e) contained in the disposal proceeds by virtue of section 809YC(4) as increased by the amount of the relevant UK gain,
(b) disregard section 809U, and
(c) anything done in relation to any part of the disposal proceeds before the part is taken offshore or used to make a qualifying investment (or both) does not count as a remittance to the United Kingdom of any of the relevant UK gain.
(7) The relevant UK gain is to be treated for the purposes of the following provisions of TCGA 1992 as if it accrued on the disposal of a foreign asset (within the meaning of Schedule 1 to TCGA 1992) —
(a) section 1M,
(b) section 3D, and
(c) Schedule 1.
(8) This section has effect despite section 3D(2) of TCGA 1992.
(9) This section does not apply with respect to a chargeable gain if P gives notice to Her Majesty's Revenue and Customs under this subsection.
(10) A notice under subsection (9)—
(a) must be in writing and must identify the gain in question,
(b) must be given on or before the first anniversary of the 31 January following the applicable tax year, and
(c) may not be revoked after that first anniversary.
809YE Exception to section 809Y: gifts to the nation
(1) Section 809Y(1) does not apply to property if—
(a) it ceases to be exempt property in the second case mentioned in that section, and
(b) by no later than the time when it ceases to be exempt property, it has been donated in the circumstances described in paragraph 1 of Schedule 14 to FA 2012 (gifts to the nation).
(2) Where section 809Y(1) does not apply to property by virtue of this section, the property is to continue to be treated as not remitted to the United Kingdom even though it no longer meets any of the relevant rules.
809YF Exception to section 809Y: compensation taken offshore or invested
(1) Section 809Y(1) does not apply to property if—
(a) it ceases to be exempt property because a compensation payment in respect of it is released, and
(b) conditions A and B are met.
(2) Condition A is that the whole of the compensation payment is taken offshore or used by a relevant person to make a qualifying investment within the period of 45 days beginning with the day on which the payment is released.
(3) Condition B is that, if Condition A is satisfied wholly or in part by using the compensation payment to make a qualifying investment, the remittance basis user makes a claim for relief under subsection (4) on or before the first anniversary of the 31 January following the tax year in which the payment is released.
(4) If section 809Y(1) does not apply to property by virtue of subsection (1), the income and gains treated under section 809X as not remitted to the United Kingdom continue to be treated after the compensation payment is released as not remitted to the United Kingdom even though the property has ceased to be exempt property.
(5) But nothing in subsection (4) prevents anything done in relation to any part of the compensation payment after that payment is taken offshore (or used to make a qualifying investment) from counting as a remittance of the underlying income or gains to the United Kingdom at the time when the thing is done.
(6) Treat the compensation payment as containing or deriving from an amount of each kind of income and gain mentioned in section 809Q(4)(a) to (h) equal to the amount of that kind of income or gain contained in the exempt property when it was brought to, or received or used in, the United Kingdom (as mentioned in section 809X).
(7) Where Condition A was met by using the compensation payment to make a qualifying investment—
(a) the business investment provisions apply to the income and gains that continue, by virtue of subsection (4), to be treated as not remitted as they apply to income or gains that are treated under section 809VA(2) as not remitted, and
(b) if the investment was made using more than just the compensation payment, treat only the part of the investment made using the payment as “the investment” for the purposes of those provisions.
(1) Property meets the public access rule if conditions B and C are met.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Condition B is that—
(a) the property is available for public access at an approved establishment,
(b) the property is to be available for public access at an approved establishment and, in connection with its being so available, is in transit to, or in storage at, public access rule premises, or
(c) the property has been available for public access at an approved establishment and, in connection with its having been so available, is in transit from, or in storage at, public access rule premises.
(4) Property is “available for public access” at an approved establishment if the property is—
(a) on public display at the establishment,
(b) held by the establishment and made available to the public on request for viewing or for educational use, or
(c) held by the establishment for public exhibition in connection with the sale of the property.
(5) An “approved establishment” is—
(a) an approved museum, gallery or other institution within the meaning of Group 9 of Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984, or
(b) any other person, premises or institution designated (or of a description designated) by the Commissioners.
(6) “Public access rule premises” are—
(a) premises in the United Kingdom at which the property is to be, or has been, available for public access, or
(b) other commercial premises in the United Kingdom used by the approved establishment for the storage of property in advance of its being, or after its having been, available for public access at the approved establishment.
(7) Condition C is that, during the relevant period, the property meets condition B for no more than—
(a) two years, or
(b) such longer period as the Commissioners may specify.
(8) “The relevant period” means the period—
(a) beginning with the importation of the property, and
(b) ending when it ceases to be in the United Kingdom after that importation.
(8A) But if the property is lost or stolen—
(a) the relevant period ends with the time at which it is lost or stolen, and
(b) a new relevant period begins with its importation or the time at which it is recovered.
(9) “Importation” means the property being brought to, or received or used in, the United Kingdom in circumstances in which section 809L(2)(a) applies.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Clothing, footwear, jewellery or watches meet the personal use rule if they—
(a) are property of a relevant person, and
(b) are for the personal use of a relevant individual.
(2) In this section—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) “relevant individual” means an individual who is a relevant person by virtue of section 809M(2)(a), (b), (c) or (d) (the individual with income or gains, or a husband, wife, civil partner, child or grandchild).
(1) Property meets the repair rule for the whole of the relevant period if, during the whole of that period, the property meets the repair conditions.
(2) Property meets the repair rule for a part of the relevant period if—
(a) during the whole of that part of that period, the property meets the repair conditions, and
(b) during the whole of the other part of that period, or the whole of each other part of that period, the property meets the repair conditions or the public access rule.
(3) Property meets the repair conditions if the property—
(a) is under repair or restoration,
(b) is in transit from a place outside the United Kingdom to repair rule premises, in transit between such premises, or in storage at such premises, in advance of repair or restoration, or
(c) is in storage at such premises, in transit between such premises, or in transit from such premises to a place outside the United Kingdom, following repair or restoration.
(4) “Repair rule premises” means—
(a) premises in the United Kingdom that are to be used, or have been used, for the repair or restoration referred to in subsection (3)(b) or (c), or
(b) other commercial premises in the United Kingdom used by the restorer for the storage of property in advance of, or following, repair or restoration of property by the restorer.
(5) “Restorer” means the person who is to carry out, or has carried out, the repair or restoration referred to in subsection (3)(b) or (c).
(6) Property meets the repair conditions, or the public access rule, during the whole of a period, or the whole of part of a period, if the property meets those conditions or that rule—
(a) on the whole of, or on part of, the first day of that period or part period,
(b) on the whole of, or on part of, the last day of that period or part period, and
(c) on the whole of each other day of that period or part period.
(7) “The relevant period” has the same meaning as in section 809Z.
(1) Property meets the temporary importation rule if the total number of countable days (subject to any increase under subsection (3B)) is 275 or fewer.
(2) A “countable day” is a day on which, or on part of which, the property is in the United Kingdom by virtue of being brought to, or received or used in, the United Kingdom in circumstances in which section 809L(2)(a) applies (whether the current case, or a past case, when the property was so brought, received or used).
(3) A day is not a countable day if, on that day or any part of that day—
(za) the property meets the public access rule,
(a) the property meets the personal use rule,
(b) the property meets the repair rule, ...
(ba) subsection (3A) applies to the property,
(c) the notional remitted amount in relation to the property is less than £1,000 or
(d) all or any part of the income or chargeable gains contained in the property (or from which the property derives) is treated, or continues to be treated, under section 809VA(2), 809Y(8)(b), 809YC(2) or 809YF(4) as not remitted to the United Kingdom.
(3A) This subsection applies to the property if—
(a) it is not available to be used or enjoyed in the United Kingdom by or for the benefit of a relevant person because it has been lost, stolen or destroyed,
(b) (if lost or stolen) it has not been recovered, and
(c) no compensation payment has been released in respect of it.
(3B) If—
(a) property that has been lost or stolen is recovered,
(b) the first day after the day on which it is recovered is a countable day, and
(c) excluding that countable day there have already been 231 or more countable days in relation to the property,
the number of countable days specified in subsection (1) is read as being increased by the number necessary for there to be 45 countable days beginning with the countable day mentioned in paragraph (b).
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The “notional remitted amount”, in relation to property, is the amount ... that would be taken to be remitted to the United Kingdom in relation to the property (if section 809X did not apply in relation to the property).
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) This section applies for the purposes of sections 809X to 809Z5.
(2) “Property” does not include money.
(3) In subsection (2) “money” includes—
(a) a traveller's cheque,
(b) a promissory note,
(c) a bill of exchange, and
(d) any other—
(i) instrument that is evidence of a debt, or
(ii) voucher, stamp or similar token or document which is capable of being exchanged for money, goods or services.
(4) References to property being in the United Kingdom are references to the property—
(a) being in the United Kingdom after being brought to, or received in, the United Kingdom in circumstances in which section 809L(2)(a) applies, or
(b) being used in the United Kingdom in circumstances in which section 809L(2)(a) applies.
(5) References to property being lost, stolen or destroyed are to the property being lost, stolen or destroyed whilst in the United Kingdom.
(6) “Compensation payment”, in relation to property that has been lost, stolen or destroyed, means any payment of compensation (whether under an insurance policy or otherwise) in respect of the property.
(7) A compensation payment is “released” on the day on which it first becomes available for use in the United Kingdom by or for the benefit of any relevant person.
(8) Property that has been lost or stolen is “recovered” on the day on which it becomes available to be used or enjoyed in the United Kingdom by or for the benefit of a relevant person.
(1) This section applies for the purposes of this Chapter.
(2) An individual's “foreign income and gains” for a tax year are—
(a) the individual's relevant foreign earnings for that year,
(b) the individual's foreign specific employment income for that year,
(c) the individual's relevant foreign income for that year, and
(d) ... the individual's foreign chargeable gains for that year.
(3) An individual's “relevant foreign earnings” for a tax year are—
(a) if the individual does not meet the requirement of section 26A of ITEPA 2003 for that year, the individual's chargeable overseas earnings for that year, and
(b) otherwise, the individual's general earnings within section 26(1) of ITEPA 2003 for that year (non-UK earnings).
(4) An individual's “foreign specific employment income” for a tax year (“the relevant tax year”) consists of the income (if any) within subsections (4A) and (4B).
(4A) The income within this subsection is the individual's specific employment income for the relevant tax year so far as it consists of securities income that is “foreign” for the purposes of section 41F of ITEPA 2003.
(4B) The income within this subsection is any income, or any part of any income, of the individual—
(a) to which section 554Z9(2) or 554Z10(2) of ITEPA 2003 applies, and
(b) which consists of the value of a relevant step, or a part of the value of a relevant step, which is “for” the relevant tax year as determined under section 554Z4 of ITEPA 2003.
(5) An individual's “foreign chargeable gains” for a tax year are the chargeable gains accruing to the individual in that year on the disposal of foreign assets (within the meaning of Schedule 1 to TCGA 1992).
(6) In subsection (3)(a) “chargeable overseas earnings” has the same meaning as in section 22 of ITEPA 2003 (see section 23 of that Act).
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) In this Chapter, in relation to a sale or other disposal, “the disposal proceeds” means—
(a) the consideration for the disposal, less
(b) any agency fees that are deducted before the consideration is paid or otherwise made available to or for the benefit of the person making the disposal (“the transferor”) or any other relevant person.
(2) The following rules apply in determining the consideration for the disposal.
(3) If the consideration is provided in the form of anything other than money, the amount of the consideration is the market value of the thing at the time of the disposal.
(4) If the disposal is made other than by way of a bargain made at arm's length, the disposal is deemed to be made for a consideration equal to the market value, immediately before the disposal, of the thing being disposed of.
(5) Without limiting the generality of subsection (4), a disposal made to another relevant person or to a person connected with a relevant person is treated in all cases as made other than by way of a bargain at arm's length.
(6) In subsection (1), “agency fees” means fees and other incidental costs of the disposal that are charged to the transferor by any person by or through whom the disposal is effected, but excluding any such fees or costs that—
(a) are charged to the transferor by another relevant person, or
(b) are to be passed on to or otherwise applied for the benefit of a relevant person.
(7) The exclusion mentioned in subsection (6) does not apply to the extent that the fees or costs—
(a) relate to a service actually provided by the relevant person to the transferor in connection with effecting the disposal, and
(b) do not exceed the amount that would be charged for that service if it were provided in the ordinary course of business and on arm's length terms.
809Z9 Taking proceeds etc offshore or investing them
(1) This section applies to a provision of this Chapter that is satisfied if something (for example, disposal proceeds) is taken offshore or used by a relevant person to make a qualifying investment.
(2) Things are to be regarded as “taken offshore” if (and only if) they are taken outside the United Kingdom such that, on leaving the United Kingdom, they cease to be available—
(a) to be used or enjoyed in the United Kingdom by or for the benefit of a relevant person, or
(b) to be used or enjoyed in any other way that would count as remitting income or gains to the United Kingdom.
(3) If—
(a) the thing required to be taken offshore or invested is money, and
(b) it is paid temporarily into an account pending satisfaction of the provision,
the provision is satisfied only if the money actually taken offshore or invested is taken from the same account.
(4) If the thing required to be taken offshore or invested is something in money's worth, the provision may be satisfied—
(a) by taking the thing offshore or investing it, or
(b) by taking offshore or investing money or other property of the equivalent value.
(5) “The equivalent value” is the market value of the thing in money's worth, assessed as at the date of the sale or other disposal in relation to which the provision is triggered.
(6) If the consideration for a disposal is deemed under section 809Z8(4), the provision may be satisfied by taking offshore or investing money or other property of a value equal to—
(a) the amount of the deemed consideration, less
(b) any agency fees (within the meaning of section 809Z8) that are deducted before the actual consideration is paid or otherwise made available to or for the benefit of a relevant person.
(7) Subsections (4)(b) and (6) do not apply in the case of other property of the equivalent value if the other property is—
(a) exempt property under section 809X,
(b) consideration for the disposal of any such exempt property, or
(c) consideration for the disposal of all or part of the holding (see section 809VC) relating to a qualifying investment.
(8) Money or other property taken offshore or invested in accordance with subsection (4)(b) or (6) is to be treated for the purposes of this Chapter—
(a) as deriving from the thing required to be taken offshore or invested, and
(b) as having the same composition of kinds of income and capital as that thing.
(9) A provision to which this section applies may be satisfied—
(a) by taking the whole thing offshore or investing the whole thing, or
(b) by taking one part offshore and investing the other part.
(10) References in this section to something being “invested” are to something being used by a relevant person to make a qualifying investment.
(11) The provisions to which this section applies include sections 809UA(2) and 809VB(2), but in those cases—
(a) disregard references in this section to investment, and
(b) in the case of section 809VB(2), the assessment date for the purposes of subsection (5) is the date of the relevant event (see section 809VA(3)(b)).
In this Chapter—
“the business investment provisions” means sections 809VA to 809VO;
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
“market value” has the same meaning as in TCGA 1992 (see in particular sections 272 and 273 of that Act);
“qualifying investment” has the meaning given by section 809VC (and references to making a qualifying investment are to be read in accordance with that section);
“relevant person” has the meaning given by section 809M;
“the remittance basis user”, in relation to income or chargeable gains of an individual, means that individual;
“TRF capital” has the meaning given by section 809Q(9).
(1) This Chapter provides for limits on the liability to income tax of non-UK residents.
(2) See sections 811 to 814 in the cases of—
(a) a non-UK resident, other than a company, and
(b) a non-UK resident company liable as a trustee.
(3) See sections 815 and 816 in the case of a non-UK resident company which is liable otherwise than as a trustee.
(4) In relation to an individual—
(a) a reference in this Chapter to a non-UK resident's liability to income tax is a reference to the liability of someone who is non-UK resident for the tax year for which the liability arises, and
(b) accordingly, enactments under which income arising to a UK resident in the overseas part of a split year is treated as arising to a non-UK resident are of no relevance to this Chapter.
811 Limit on liability to income tax of non-UK residents
(1) This section applies to income tax to which—
(a) a non-UK resident, other than a company, is liable, or
(b) a non-UK resident company is liable as a trustee.
(2) Subsection (1) is subject to section 812 (case where limit not to apply).
(3) The non-UK resident's liability to income tax for a tax year is limited to the sum of amounts A and B.
(4) Amount A is the sum of—
(a) any sums representing income tax deducted from the non-UK resident's disregarded income for the tax year (see section 813), and
(b) any sums representing income tax that are treated as deducted from or paid in respect of that income, ...
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) Amount B is the amount that, apart from this section, would be the non-UK resident's liability to income tax for the tax year, if the following were left out of account—
(a) the non-UK resident's disregarded income for the tax year, and
(b) any relief mentioned in subsection (6) to which the non-UK resident is entitled for the tax year as a result of—
(i) section 56(3) or 460(3) of this Act ... (residence etc of claimants), or
(ii) double taxation arrangements.
(6) The reliefs referred to in subsection (5) are—
(a) an allowance under Chapter 2 of Part 3 of this Act ... (personal allowance and blind person's allowance),
(b) a tax reduction under Chapter 3 of Part 3 of this Act ... (tax reductions for married couples and civil partners),
(c) relief under section 457 or 458 of this Act (payments to trade unions and police organisations),
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and
(e) relief under section 266 of ICTA (life assurance premiums).
(1) Section 811 does not apply to income tax to which non-UK resident trustees are liable for a tax year, if there is a beneficiary of the trust who is—
(a) an individual who is ... UK resident, or
(b) a UK resident company.
(2) For the purposes of subsection (1) a person is a beneficiary of the trust if—
(a) the person is an actual or potential beneficiary of the trust, and
(b) condition A or B is met in relation to the person.
(3) Condition A is that the person is, or will or may become, entitled under the trust to receive some or all of any income under the trust.
(4) Condition B is that some or all of any income under the trust may be paid to or used for the benefit of the person in the exercise of a discretion conferred by the trust.
(5) The references in subsections (3) and (4) to any income under the trust include a reference to any capital under the trust so far as it represents amounts originally received by the trustees as income.
(1) This section applies if—
(a) an individual is temporarily non-resident,
(b) the individual's liability to income tax for a tax year is limited under section 811,
(c) that tax year (“the non-resident year”) falls within the temporary period of non-residence, and
(d) the individual's income for that tax year includes relevant investment income.
(2) The total income (see Step 1 of the calculation in section 23) on which the individual is charged to income tax for the year of return is to be increased by an amount equal to the amount of that relevant investment income.
(3) But the notional UK tax on that relevant investment income is to be allowed as a credit against the individual's liability to income tax for the year of return under Step 6 of the calculation in section 23.
(4) Income is “relevant investment income” if—
(a) it is chargeable under Chapter 3 or 5 of Part 4 of ITTOIA 2005 (dividends etc from UK resident companies and stock dividends from UK resident companies),
(b) the distributing company is a close company, and
(c) the income arises or is treated as arising to the individual because the individual was at a relevant time—
(i) a material participator in that company, or
(ii) an associate of a material participator in the company.
(4A) Where—
(a) a company (“company A”) makes a payment (including by way of a loan) to the individual in the non-resident year,
(b) the individual is, at a relevant time, a material participator in, or is an associate of a material participator in, another company that is a close company (“company B”),
(c) at the time the payment was made, company B controls (within the meaning of sections 450 and 451 of CTA 2010) company A, and
(d) it is reasonable to suppose that the making of that payment is intended to avoid the amount of the payment being included in the individual’s income for the non-resident year as relevant investment income,
the amount of the payment is to be treated as relevant investment income of the individual for the non-resident year.
(4B) Where—
(a) a company makes a payment (including by way of a loan) to any person other than the individual at any time in the non-resident year,
(b) if the company had made a dividend to the individual at that time, it would be relevant investment income of the individual, and
(c) the individual receives an amount or a benefit (“the relevant receipt”) as a result of arrangements that it is reasonable to suppose are intended to secure that—
(i) the individual receives the benefit of the payment or any part of it, but
(ii) without the amount being included in the individual’s income for the non-resident year as relevant investment income,
the amount of the value of the relevant receipt is to be treated as relevant investment income of the individual for the non-resident year.
(4C) For the purposes of subsection (4B)(c) “arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
(4D) Where tax of a similar character to income tax is payable by the individual under the law of a territory outside the United Kingdom on relevant investment income—
(a) credit for any such tax paid by the individual is to be allowed against income tax chargeable in respect of the relevant investment income, and
(b) the credit is to be given effect by treating the amount of the relevant investment income as reduced to such amount as would secure that so much of the credit is given as does not exceed the income tax chargeable in respect of the relevant investment income.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) The “notional UK tax” on relevant investment income is—
(a) the total of any sums in respect of that income that were included within amount A in determining the limit under section 811, less
(b) any credit for foreign tax paid in respect of that income that was allowed under Chapter 2 of Part 2 of TIOPA 2010 against the individual's liability to income tax for the non-resident year.
(8) The following matters are to be determined on a just and reasonable basis—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) the extent to which a sum included within amount A is a sum in respect of relevant investment income.
(9) Nothing in any double taxation arrangements is to be read as preventing the individual from being chargeable to income tax by virtue of this section (or as preventing a charge to that tax from arising as a result).
(10) Part 4 of Schedule 45 to FA 2013 (statutory residence test: anti-avoidance) explains—
(a) when an individual is to be regarded as “temporarily non-resident”, and
(b) what “the temporary period of non-residence”, “the year of departure” and “the period of return” mean.
(11) In this section—
“associate” and “participator” have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454);
“the distributing company” means the UK resident company mentioned in section 383(1) or, as the case may be, 410(1) of ITTOIA 2005;
“material participator” means a participator who has a material interest in the company, as defined in section 457 of CTA 2010;
“relevant time” means—
any time in the year of departure or, if the year of departure is a split year as respects the individual, the UK part of that year, or
any time in one or more of the 3 tax years preceding that year;
...
“year of return” means the tax year consisting of or including the period of return.
(1) For the purposes of this Chapter income arising to a non-UK resident is “disregarded income” if it is—
(a) disregarded savings and investment income (see section 825),
(b) disregarded annual payments (see section 826),
(c) disregarded pension income,
(d) disregarded social security income,
(e) disregarded transaction income (see section 814), or
(f) income of such other description as the Treasury may by regulations designate for the purposes of this section.
(2) But income in relation to which the non-UK resident has a UK representative for the purposes of Chapter 2B is not disregarded income.
(3) Income is “disregarded pension income” if it is chargeable under Part 9 of ITEPA 2003 (pension income) because any of the following provisions of that Act applies to it—
section 577 (UK social security pensions),
section 579A (pensions under registered pension schemes) (but see subsection (4) below),
section 609 (annuities for the benefit of dependants),
section 610 (annuities under non-registered occupational pension schemes), or
section 611 (annuities in recognition of another's services).
(4) Income chargeable under Part 9 of ITEPA 2003 because section 579A of that Act applies to it is disregarded pension income only if the registered pension scheme in question—
(a) falls within paragraph 1(1)(f) of Schedule 36 to FA 2004, and
(b) was, immediately before 6 April 2006, a retirement annuity contract to which section 605 of ITEPA 2003 applied.
(5) Income is “disregarded social security income” if—
(a) it is a taxable benefit listed in Table A in section 660 of ITEPA 2003, other than income support or jobseeker's allowance, and
(b) it is chargeable under Part 10 of that Act (social security income).
(1) Subsection (2) applies if a non-UK resident carries on (alone or in partnership) a business through a broker in the United Kingdom.
(2) Income is “disregarded transaction income”, subject to subsection (6), if—
(a) it is transaction income, and
(b) the independent broker conditions are met in relation to the transaction in question.
(3) Subsection (4) applies if a non-UK resident carries on (alone or in partnership) a business through an investment manager in the United Kingdom.
(4) Income is “disregarded transaction income”, subject to subsection (6), if—
(a) it is transaction income, and
(b) the independent investment manager conditions are met in relation to the transaction in question.
(5) In this Chapter “transaction income”, in relation to a transaction carried out through a broker or investment manager in the United Kingdom on behalf of a non-UK resident, means income which arises to the non-UK resident from—
(a) so much of the non-UK resident's business carried on (alone or in partnership) through the broker or investment manager as relates to the transaction, or
(b) property or rights which, as a result of the transaction, are used by, or held by or for, the broker or investment manager on behalf of the non-UK resident.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) This section needs to be read with—
section 817 (the independent broker conditions),
sections 818 to 824 (the independent investment manager conditions),
section 827 (meaning of “investment manager” and “investment transaction”), and
section 828 (transactions through brokers and investment managers).
815 Limit on liability to income tax of non-UK resident companies
(1) This section applies to income tax to which a non-UK resident company is liable, otherwise than as a trustee.
(2) The non-UK resident company's liability to income tax for a tax year is limited to the sum of amounts A and B.
(3) Amount A is the sum of—
(a) any amounts representing income tax deducted from the non-UK resident company's disregarded company income for the tax year, and
(b) any amounts representing income tax that are treated as deducted from or paid in respect of that income, ...
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Amount B is the amount that, apart from this section, would be the non-UK resident company's liability to income tax for the tax year if the non-UK resident company's disregarded company income for the tax year were left out of account.
(1) The independent broker conditions are met in relation to a transaction carried out on behalf of a non-UK resident by a broker in the United Kingdom if conditions A to D are met.
(2) Condition A is that at the time of the transaction the broker is carrying on the business of a broker.
(3) Condition B is that the transaction is carried out ... in the ordinary course of that business.
(4) Condition C is that the remuneration which the broker receives in respect of the transaction for the provision of the services of a broker to the non-UK resident is not less than is customary for that class of business.
(5) Condition D is that the broker does not fall for the purposes of Chapter 2B of this Part, or of Chapter 1 of Part 7A of TCGA 1992, to be treated as a UK representative of the non-UK resident in relation to any other income which is chargeable to income tax, or amounts which are chargeable to capital gains tax, for the same tax year as the transaction income.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The independent investment manager conditions are met in relation to an investment transaction carried out on behalf of a non-UK resident by an investment manager in the United Kingdom if conditions A to E are met.
(2) Condition A is that at the time of the transaction the investment manager is carrying on a business of providing investment management services.
(3) Condition B is that the transaction is carried out in the ordinary course of that business.
(4) Condition C is that, when the investment manager acts on behalf of the non-UK resident in relation to the transaction, the relationship between them, having regard to its legal, financial and commercial characteristics, is a relationship between persons carrying on independent businesses dealing with each other at arm's length.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) Condition E is that the remuneration which the investment manager receives in respect of the transaction for the provision of investment management services to the non-UK resident is not less than is customary for that class of business.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
825 Meaning of “disregarded savings and investment income”
(1) For the purposes of this Chapter income is “disregarded savings and investment income” if—
(a) it is chargeable under Chapter 3 or 5 of Part 4 of ITTOIA 2005 (dividends etc from UK resident companies and stock dividends from UK resident companies), or
(b) it is within subsection (2) and is not relevant foreign income.
(2) Income is within this subsection if it is chargeable under—
(a) Chapter 2 of Part 4 of ITTOIA 2005 (interest),
(b) Chapter 7 of that Part (purchased life annuity payments),
(c) Chapter 8 of that Part (profits from deeply discounted securities),
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) Chapter 11 of that Part (transactions in deposits), or
(f) regulation 15 of the Unauthorised Unit Trusts (Tax) Regulations 2013.
For the purposes of this Chapter income is “disregarded annual payments” if it is not relevant foreign income and is chargeable under—
(a) section 579 of ITTOIA 2005, so far as it relates to annual payments (royalties etc from intellectual property),
(b) Chapter 4 of Part 5 of that Act, so far as it relates to annual payments (certain telecommunication rights: non-trading income), or
(c) Chapter 7 of Part 5 of that Act (annual payments not otherwise charged).
827 Meaning of “investment manager” and “investment transaction”
(1) In this Chapter “investment manager” means a person who provides investment management services (which may include or comprise the provision of investment advice).
(2) An “investment transaction” means any transaction other than a transaction with an excluded subject matter.
(3) The following are excluded subject matters—
(a) land in the United Kingdom, and
(b) any commodity or other physical asset.
(4) But a transaction is to be treated as not having an excluded subject matter if—
(a) it is a derivative contract whose subject matter is a commodity but which does not result in the physical delivery of the commodity, or
(b) it is a derivative contract whose subject matter is an excluded subject matter only because it operates by reference to a qualifying index, provided that index is not maintained by a person who is connected to any of the parties to the transaction.
(5) For the purposes of subsection (4) a “qualifying index” means an index relating to an excluded subject matter that—
(a) is publicly available, and
(b) is an index of a substantial number of assets.
828 Transactions through brokers and investment managers
(1) For the purposes of this Chapter a person is regarded as carrying out a transaction on behalf of another if the person—
(a) undertakes the transaction, whether on behalf of or to the account of the other, or
(b) gives instructions for it to be so carried out by another.
(2) In the case of a person who acts as a broker or investment manager as part only of a business, this Chapter has effect as if that part were a separate business.
(1) This section applies to an individual who—
(a) is a member of a visiting force of a designated country or of a civilian component of such a force,
(b) is in the United Kingdom, but only because of being a member of the force or the civilian component, and
(c) is not a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen.
(2) For the purposes of subsection (1)—
(a) members of the armed forces of a designated country who are attached to a designated international military headquarters are treated as a visiting force of that country, and
(b) whether an individual is a member of a civilian component of such a force is to be determined accordingly.
(2A) This section also applies to an individual within subsection (3) or (3A).
(3) An individual is within this subsection if the individual—
(a) is of a category for the time being agreed between Her Majesty's Government in the United Kingdom and the other members of the North Atlantic Council,
(b) is employed by a designated allied headquarters,
(c) is in the United Kingdom, but only because of being employed by the designated allied headquarters, and
(d) is not a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen.
(3A) An individual is within this subsection if the individual—
(a) belongs to the EU civilian staff,
(b) is in the United Kingdom, but only because of serving as part of that staff, and
(c) is not a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen.
(4) If this section applies to an individual throughout a period, the period is not treated for income tax purposes as—
(a) a period of residence in the United Kingdom, or
(b) creating a change of the individual's residence or domicile.
(5) Subsection (4) does not affect the operation of section 56 or 460 of this Act ... (residence etc of claimants) in relation to an individual for any tax year.
(6) Subsections (1) to (3) are to be interpreted as if—
(a) they were in Part 1 of the Visiting Forces Act 1952 (c. 67), and
(b) references in that Act to a country to which a provision of that Act applies were references to a designated country.
(7) In this section—
“allied headquarters” means an international military headquarters established under the North Atlantic Treaty, ...
“designated” means designated for the purpose in question by or under an Order in Council made for giving effect to an international agreement, and
“the EU civilian staff” means—
civilian personnel seconded by a member State to an EU institution for the purposes of activities (including exercises) relating to the preparation for, and execution of, tasks mentioned in Article 43(1) of the Treaty on European Union (tasks relating to a common security and defence policy), as amended from time to time, and
civilian personnel (other than locally hired personnel)—
made available to the EU by a member State to work with designated international military headquarters or a force of a designated country, or
otherwise made available to the EU by a member State for the purposes of activities of the kind referred to in paragraph (a).
(1) This section applies for income tax purposes if the personal representatives of a deceased person (“D”) include one or more persons who are UK resident and one or more persons who are non-UK resident.
(2) If the following condition is met, the person or persons who are non-UK resident are treated, in their capacity as personal representatives, as UK resident.
(3) The condition is that when D died D was UK resident ... or a long-term UK resident within the meaning of IHTA 1984.
(4) If that condition is not met, the person or persons who are UK resident are treated, in their capacity as personal representatives, as non-UK resident.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .