Part 14Income tax liability: miscellaneous rules

Chapter 1Limits on liability to income tax of non-UK residents

Limit for non-UK resident companies

815Limit 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,

(b)

any amounts representing income tax that are treated as deducted from or paid in respect of that income, and

(c)

any tax credits in respect of that income.

(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.

816Meaning of “disregarded company income”

(1)

For the purposes of this Chapter income arising to a non-UK resident company is “disregarded company income” if it is—

(a)

disregarded savings and investment income (see section 825),

(b)

disregarded annual payments (see section 826),

(c)

income arising from a transaction carried out on behalf of the non-UK resident company in the course of the company’s trade through a broker in the United Kingdom, in relation to which the independent broker conditions are met,

(d)

income arising from an investment transaction carried out on behalf of the non-UK resident company in the course of the company’s trade through an investment manager in the United Kingdom, in relation to which the independent investment manager conditions are met, or

(e)

income of such other description as the Treasury may by regulations designate for the purposes of this section.

(2)

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).