Finance Act 2003

151 Non-resident companies: extent of charge to income tax U.K.

(1) The income tax chargeable for a year of assessment on the total income of a company that is not resident in the United Kingdom is limited to the sum of the following amounts—

(a) the amount of tax that, apart from this section, would be chargeable on that total income if—

(i) the amount of that income were reduced by the amount of any income to which this section applies, and

(ii) there were disregarded any relief to which that company is entitled by virtue of arrangements having effect under section 788 of the Taxes Act 1988 (double taxation relief), and

(b) the amount of tax deducted from so much of any income to which this section applies as is income the tax on which is deducted at source.

(2) The income to which this section applies is—

[F1 (a) income (other than relevant foreign income) chargeable to tax under—

(i) Chapter 2, 7, 8, 10 or 11 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (interest, purchased life annuity payments, profits from deeply discounted securities, distributions from unauthorised unit trusts and transactions in deposits),

(ii) section 579 of that Act so far as it relates to annual payments (royalties etc. from intellectual property),

(iii) Chapter 4 of Part 5 of that Act so far as it relates to annual payments (certain telecommunication rights: non-trading income), or

(iv) Chapter 7 of Part 5 of that Act (annual payments not otherwise charged),

(aa) income chargeable to tax under Chapter 3 of Part 4 of that Act (dividends etc. from UK resident companies etc.),]

F2 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) income arising from a transaction carried out through a broker or investment manager in the United Kingdom acting as an agent of independent status in the ordinary course of his business; or

(d) income of such other description as the Treasury may by regulations designate for the purposes of this subsection.

Regulations under paragraph (d) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

(3) In subsection (1)(b) above—

(a) the reference to tax deducted at source is to tax that is or is treated as deducted, or is treated as paid, or in respect of which there is a tax credit, and

(b) the reference to the amount of tax deducted at source is to the amount that is or is treated as deducted, or is treated as paid, or, as the case may be, to the amount of that credit.

(4) This section does not apply to the income tax chargeable for a year of assessment on income of a company as a trustee.

(5) This section applies—

(a) in relation to the year 2002-03, as regards income arising on or after 1st January 2003, and

(b) in relation to the year 2003-04 and subsequent years of assessment.

Textual Amendments

F1 S. 151(2)(a)(aa) substituted for s. 151(2)(a) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 622(a) (with Sch. 2)

F2 S. 151(2)(b) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 622(b), Sch. 3 (with Sch. 2)