Income Tax Act 2007 section 643

Non-residents

Section 643 explains how non-UK residents are generally excluded from the accrued income scheme, but with important exceptions for those who trade in the UK through a branch or agency.

• A person who is non-UK resident throughout the tax year of a transfer is treated as both an excluded transferor and an excluded transferee, meaning the accrued income scheme does not apply to them
• However, a non-resident who trades in the UK through a branch or agency (a "UK branch trader") remains within the scheme if the securities transferred were situated in the UK and were used, held, or acquired for the purposes of that branch or agency
• The location of securities is determined using the rules in sections 275 and 275C of the Taxation of Chargeable Gains Act 1992, and "branch or agency" takes its meaning from section 1B(5) of the same Act
• Separate rules in section 667 deal with non-UK resident trustees, treating their accrued income profits as settlement income