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829 | Residence of individuals temporarily abroad |
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(1) | This section applies if— |
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(a) | an individual has left the United Kingdom for the purpose only of |
| 5 |
occasional residence abroad, and |
| |
(b) | at the time of leaving the individual was both UK resident and |
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(2) | Treat the individual as UK resident for the purpose of determining the |
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individual’s liability for income tax for any tax year during the whole or a part |
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of which the individual remains outside the United Kingdom for the purpose |
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only of occasional residence abroad. |
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830 | Residence of individuals working abroad |
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(1) | This section applies for income tax purposes if an individual works full-time in |
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| 15 |
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(b) | a foreign employment. |
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(2) | In determining whether the individual is UK resident ignore any living |
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accommodation available in the United Kingdom for the individual’s use. |
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(3) | A trade is foreign if no part of it is carried on in the United Kingdom. |
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(4) | An employment is foreign if all of its duties are performed outside the United |
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(5) | An employment is also foreign if in the tax year in question— |
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(a) | the duties of the employment are in substance performed outside the |
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| 25 |
(b) | the only duties of the employment performed in the United Kingdom |
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are duties which are merely incidental to the duties of the employment |
| |
performed outside the United Kingdom in the year. |
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“employment” includes an office, and |
| 30 |
“trade” includes profession and vocation. |
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831 | Foreign income of individuals in the United Kingdom for temporary purpose |
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(1) | Subsection (2) applies in relation to an individual if— |
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(a) | the individual is in the United Kingdom for some temporary purpose |
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only and with no view to establishing the individual’s residence in the |
| 35 |
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(b) | in the tax year in question the individual has not actually resided in the |
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United Kingdom at one or several times for a total period equal to 183 |
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| In determining whether an individual is within paragraph (a) ignore any living |
| 40 |
accommodation available in the United Kingdom for the individual’s use. |
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|
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|
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(2) | Apply the following rules in determining the individual’s liability for income |
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| In relation to pension or social security income arising from a source outside |
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the United Kingdom, treat the individual as non-UK resident for the purposes |
| |
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(a) | Chapter 4 of Part 9 of ITEPA 2003 (tax on foreign pensions), |
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(b) | Chapter 5A of that Part (tax on pensions under registered pension |
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schemes) but only if the income is an annuity under a registered |
| 10 |
pension scheme within paragraph 1(1)(f) of Schedule 36 to FA 2004, |
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(c) | Chapter 10 of that Part (tax on employment-related annuities), |
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(d) | Chapter 15 of that Part (tax on voluntary annual payments), |
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(e) | section 647 of ITEPA 2003 (meaning of “foreign residence condition”) |
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but only in its application for the purposes of section 651 of that Act |
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(which provides an exemption for tax under Chapter 14 of Part 9 of that |
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(f) | Chapter 6 of Part 10 of ITEPA 2003 (taxable foreign benefits). |
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| See sections 566 and 657 of ITEPA 2003 for the definitions of “pension income” |
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and “social security income”. |
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| In relation to income arising from a source outside the United Kingdom, treat |
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the individual as non-UK resident for the purposes of any charge under a |
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provision mentioned in section 830(2) of ITTOIA 2005 (which contains a list of |
| 25 |
provisions under which relevant foreign income is charged). |
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| In this rule “income” does not include income chargeable as a result of section |
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844 of ITTOIA 2005 (unremittable income: income charged on withdrawal of |
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relief after source ceases). |
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(3) | Paragraph (e) of Rule 1 in subsection (2) applies only if— |
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(a) | the individual makes a claim as mentioned in section 647(3)(a) of |
| |
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(b) | the Commissioners are satisfied that subsection (2) of this section |
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applies in relation to the individual. |
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(4) | Subsection (5) applies in relation to an individual if subsection (2) would have |
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applied in relation to the individual but for subsection (1)(b). |
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(5) | Apply the rules set out in subsection (2) in determining the individual’s |
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liability for income tax. |
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(a) | instead of treating the individual as non-UK resident in relation to the |
| 40 |
income and for the purposes mentioned in those rules, treat the |
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individual as UK resident, and |
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(b) | ignore subsection (3). |
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832 | Employment income of individuals in the United Kingdom for temporary |
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(1) | Subsection (2) applies in relation to an individual if— |
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|
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|
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(a) | the individual is in the United Kingdom for some temporary purpose |
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only and with no intention of establishing the individual’s residence in |
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(b) | during the tax year in question the individual spends (in total) less than |
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183 days in the United Kingdom. |
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| In determining whether an individual is within paragraph (a) ignore any living |
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accommodation available in the United Kingdom for the individual’s use. |
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(2) | Treat the individual as non-UK resident for the purposes of Chapters 4 and 5 |
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of Part 2 of ITEPA 2003 (which set out rules for determining taxable earnings |
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(3) | Subsection (4) applies in relation to an individual if subsection (2) would have |
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applied in relation to the individual but for subsection (1)(b). |
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(4) | Treat the individual as UK resident for the purposes of the provisions |
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mentioned in subsection (2). |
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833 | Visiting forces and staff of designated allied headquarters |
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(1) | This section applies to an individual who— |
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(a) | is a member of a visiting force of a designated country or of a civilian |
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component of such a force, |
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(b) | is in the United Kingdom, but only because of being a member of the |
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force or the civilian component, and |
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(c) | is not a British citizen, a British overseas territories citizen, a British |
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National (Overseas) or a British Overseas citizen. |
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(2) | For the purposes of subsection (1)— |
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(a) | members of the armed forces of a designated country who are attached |
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to a designated allied headquarters are treated as a visiting force of that |
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(b) | whether an individual is a member of a civilian component of such a |
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force is to be determined accordingly. |
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(3) | This section also applies to an individual who— |
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(a) | is of a category for the time being agreed between Her Majesty’s |
| 30 |
Government in the United Kingdom and the other members of the |
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(b) | is employed by a designated allied headquarters, |
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(c) | is in the United Kingdom, but only because of being employed by the |
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designated allied headquarters, and |
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(d) | is not a British citizen, a British overseas territories citizen, a British |
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National (Overseas) or a British Overseas citizen. |
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(4) | If this section applies to an individual throughout a period, the period is not |
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treated for income tax purposes as— |
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(a) | a period of residence in the United Kingdom, or |
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(b) | creating a change of the individual’s residence or domicile. |
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(5) | Subsection (4) does not affect the operation of section 56 or 460 of this Act or |
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section 278 of ICTA (residence etc of claimants) in relation to an individual for |
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(6) | Subsections (1) to (3) are to be interpreted as if— |
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(a) | they were in Part 1 of the Visiting Forces Act 1952 (c. 67), and |
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(b) | references in that Act to a country to which a provision of that Act |
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applies were references to a designated country. |
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“allied headquarters” means an international military headquarters |
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established under the North Atlantic Treaty, and |
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“designated” means designated for the purpose in question by or under |
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an Order in Council made for giving effect to an international |
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834 | Residence of personal representatives |
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(1) | This section applies for income tax purposes if the personal representatives of |
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a deceased person (“D”) include one or more persons who are UK resident and |
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one or more persons who are non-UK resident. |
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(2) | If the following condition is met, the person or persons who are non-UK |
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resident are treated, in their capacity as personal representatives, as UK |
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(3) | The condition is that when D died D was UK resident, ordinarily UK resident |
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or domiciled in the United Kingdom. |
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(4) | If that condition is not met, the person or persons who are UK resident are |
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treated, in their capacity as personal representatives, as non-UK resident. |
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835 | Residence rules for trustees and companies |
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(1) | See sections 475 and 476 for rules about the residence of the trustees of a |
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(2) | See the following provisions for rules about the residence of companies— |
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| sections 66 and 66A of FA 1988, and |
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836 | Jointly held property |
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(1) | This section applies if income arises from property held in the names of |
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(a) | who are married to, or are civil partners of, each other, and |
| |
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(2) | The individuals are treated for income tax purposes as beneficially entitled to |
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the income in equal shares. |
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(3) | But this treatment does not apply in relation to any income within any of the |
| |
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| Income to which neither of the individuals is beneficially entitled. |
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|
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| Income in relation to which a declaration by the individuals under section 837 |
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has effect (unequal beneficial interests). |
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| 5 |
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| Income to which Part 9 of ITTOIA 2005 applies (partnerships). |
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| Income arising from a UK property business which consists of, or so far as it |
| 10 |
includes, the commercial letting of furnished holiday accommodation (within |
| |
the meaning of Chapter 6 of Part 3 of ITTOIA 2005). |
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| Income consisting of a distribution arising from property consisting of— |
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(a) | shares in or securities of a close company to which one of the |
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individuals is beneficially entitled to the exclusion of the other, or |
| |
(b) | such shares or securities to which the individuals are beneficially |
| |
entitled in equal or unequal shares. |
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| “Shares” and “securities” have the same meaning as in section 254 of ICTA. |
| 20 |
| |
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| Income to which one of the individuals is beneficially entitled so far as it is |
| |
treated as a result of any other provision of the Income Tax Acts as— |
| |
(a) | the income of the other individual, or |
| 25 |
(b) | the income of a third party. |
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837 | Jointly held property: declarations of unequal beneficial interests |
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(1) | The individuals may make a joint declaration under this section if— |
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(a) | one of them is beneficially entitled to the income to the exclusion of the |
| |
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(b) | they are beneficially entitled to the income in unequal shares, |
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| and their beneficial interests in the income correspond to their beneficial |
| |
interests in the property from which it arises. |
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(2) | The declaration must state the beneficial interests of the individuals in— |
| |
(a) | the income to which the declaration relates, and |
| 35 |
(b) | the property from which that income arises. |
| |
(3) | The declaration has effect only if notice of it is given to an officer of Revenue |
| |
| |
(a) | in such form and manner as the Commissioners for Her Majesty’s |
| |
Revenue and Customs may prescribe, and |
| 40 |
(b) | within the period of 60 days beginning with the date of the declaration. |
| |
(4) | The declaration has effect in relation to income arising on or after the date of |
| |
| |
(5) | The declaration continues to have effect until such time (if any) as there is a |
| |
change in the beneficial interests of the individuals in either— |
| 45 |
(a) | the income to which the declaration relates, or |
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|
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|
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|
(b) | the property from which that income arises. |
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Other miscellaneous rules |
| |
838 | Local authorities and local authority associations |
| |
(1) | A local authority in the United Kingdom is not liable to income tax in respect |
| 5 |
| |
(2) | A local authority association in the United Kingdom is not liable to income tax |
| |
in respect of its income. |
| |
(3) | Tax is repayable as a result of subsection (1) or (2) only if a claim for repayment |
| |
| 10 |
839 | Issue departments of the Reserve Bank of India and the State Bank of |
| |
| |
No liability to income tax arises in respect of the income of the issue |
| |
| |
(a) | the Reserve Bank of India constituted under an Act of the Indian |
| 15 |
legislature called the Reserve Bank of India Act 1934, or |
| |
(b) | the State Bank of Pakistan constituted under orders made under section |
| |
9 of the Indian Independence Act 1947 (c. 30). |
| |
840 | Government securities held by non-UK resident central banks |
| |
(1) | No liability to income tax arises in respect of income from securities which is— |
| 20 |
(a) | income payable out of the public revenue of the United Kingdom, and |
| |
(b) | income of a bank, or the issue department of a bank, to which this |
| |
section applies for the time being. |
| |
(2) | But subsection (1) does not prevent the income from being taken into account |
| |
in calculating profits, gains or losses of a business carried on in the United |
| 25 |
| |
(3) | Her Majesty may by Order in Council direct that this section applies to a bank |
| |
or its issue department if it appears to Her Majesty that the bank— |
| |
(a) | is non-UK resident, and |
| |
(b) | is entrusted by the government of a territory outside the United |
| 30 |
Kingdom with the custody of the territory’s principal foreign exchange |
| |
| |
(4) | No recommendation may be made to Her Majesty in Council to make an order |
| |
under this section unless a draft of the order has been laid before and approved |
| |
by a resolution of the House of Commons. |
| 35 |
841 | Official agents of Commonwealth countries etc |
| |
(1) | This section applies if an individual is employed in the United Kingdom as an |
| |
| |
|
| |
|
| |
|
(a) | a country mentioned in Schedule 3 to the British Nationality Act 1981 |
| |
(c. 61) (which contains a list of Commonwealth countries) or the |
| |
| |
(b) | a state or province of a country within paragraph (a). |
| |
(2) | If conditions A and B are met, the individual is entitled to the same immunity |
| 5 |
from income tax as that to which a member of the staff of a mission is entitled |
| |
under the Diplomatic Privileges Act 1964 (c. 81). |
| |
(3) | Condition A is that the individual has been certified— |
| |
(a) | to be ordinarily resident outside the United Kingdom, and |
| |
(b) | to be UK resident solely for the purposes of the individual’s functions |
| 10 |
| |
(4) | The certification must have been done by (as the case may be)— |
| |
(a) | the High Commissioner of the country for which the individual is an |
| |
| |
(b) | the Agent-General of the state or province for which the individual is |
| 15 |
| |
(5) | In subsection (4)(a) “High Commissioner” includes the head of the mission of |
| |
the country in question by whatever name called. |
| |
(6) | Condition B is that the individual’s functions as an official agent are not |
| |
performed in connection with a trade, business or other undertaking carried on |
| 20 |
for the purposes of profit. |
| |
(7) | In this section “head of the mission” and “a member of the staff of a mission” |
| |
are to be read in accordance with the Diplomatic Privileges Act 1964. |
| |
842 | European Economic Interest Groupings |
| |
(1) | The following rules about European Economic Interest Groupings apply for |
| 25 |
the purposes of charging income tax— |
| |
| |
| A grouping is treated as acting as the agent of its members. |
| |
| |
| 30 |
| The activities of a grouping are treated as those of its members acting jointly. |
| |
| |
| |
| Each member of a grouping is treated as having a share of the grouping’s |
| |
property, rights and liabilities. |
| 35 |
| |
| |
| Any trade or profession carried on by the grouping is treated as carried on in |
| |
partnership by the members of the grouping. |
| |
(2) | For the purposes of Rule 3, a member’s share of any property, rights or |
| 40 |
liabilities of a grouping is determined according to the contract under which |
| |
the grouping is established. |
| |
|
| |
|