Part 5Miscellaneous income
C1C2Chapter 8Income not otherwise charged
Pt. 5 Ch. 8 applied in part (1.12.2009) (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 96(3)(b)
687Charge to tax on income not otherwise charged
1
Income tax is charged under this Chapter on income from any source that is not charged to income tax under or as a result of any other provision of this Act or any other Act.
2
Subsection (1) does not apply to annual payments F2or to income falling within Chapter 2A of Part 4.
3
Subsection (1) does not apply to income that would be charged to income tax under or as a result of another provision but for an exemption.
4
The definition of “income” in section 878(1) does not apply for the purposes of this section.
5
For exemptions from the charge under this Chapter, see in particular—
section 768 (commercial occupation of woodlands), and
section 779 (gains on commodity and financial futures).
688C1C2Income charged
C41
Tax is charged under this Chapter on the F5... amount of the income arising in the tax year.
2
Subsection (1) is subject to—
F3za
Chapter 1 of Part 6A (which gives relief on relevant income which may consist of or include income chargeable under this Chapter: see, in particular, sections 783AB, 783AC, 783AG and 783AJ),
a
Chapter 1 of Part 7 (which provides relief on income from the use of furnished accommodation in an individual's only or main residence: see, in particular, sections 794 and 798),
b
Chapter 2 of that Part (which provides relief on income from the provision by an individual of F4qualifying care: see, in particular, sections 814 and 817), and
c
Part 8 (foreign income: special rules).
C3689Person liable
The person liable for any tax charged under this Chapter is the person receiving or entitled to the income.
689AF1Temporary non-residents
1
This section applies if an individual is temporarily non-resident.
2
Distributions within subsection (3) are to be treated for the purposes of this Chapter as if they had been received by the individual, or as if the individual had become entitled to them, in the period of return.
3
A distribution is within this subsection if—
a
the individual receives or becomes entitled to it in the temporary period of non-residence,
b
it is a distribution of a company that is a close company or that would be a close company if the company were UK resident,
c
the individual receives or becomes entitled to the distribution by virtue of being at a relevant time—
i
a material participator in the company, or
ii
an associate of a material participator in the company, and
d
ignoring this section, the individual—
i
is not liable for tax under this Chapter in respect of the distribution, but
ii
would have been so liable if the individual had received the distribution, or become entitled to it, in the period of return.
4
For the purposes of subsection (3)—
a
“associate” and “participator” have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454),
b
a “material participator” is a participator who has a material interest in the company, as defined in section 457 of that Act,
c
“relevant time” means—
i
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
ii
any time in one or more of the 3 tax years preceding that year, and
d
paragraph (d)(i) includes a case where the individual could be relieved of liability on the making of a claim under section 6 of TIOPA 2010 (double taxation relief), even if no claim is in fact made.
5
If section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the individual for the year of return, any distribution within subsection (3) that is relevant foreign income and is remitted to the United Kingdom in the temporary period of non-residence is to be treated as remitted to the United Kingdom in the period of return.
6
In this section, “remitted to the United Kingdom” has the meaning given in Chapter A1 of Part 14 of ITA 2007.
Pt. 5 Ch. 8 applied in part (1.12.2009) (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 97(2)