Income Tax Act 2007 section 813

Meaning of "disregarded income"

Section 813 defines the types of income arising to a non-UK resident that can be classified as "disregarded income" for the purposes of limiting their UK income tax liability.

• Disregarded income includes savings and investment income, annual payments, certain pension income, certain social security income, transaction income, and any other income the Treasury designates by regulations.
• Income is not treated as disregarded if the non-UK resident has a UK representative in relation to that income — for example, where a branch in the UK brings the income into account in computing its trading profits.
• Disregarded pension income covers UK social security pensions, certain registered pension scheme pensions (limited to pre-6 April 2006 retirement annuity contracts), dependants' annuities, annuities under non-registered occupational pension schemes, and annuities recognising another person's services.
• Disregarded social security income covers taxable UK benefits listed in Table A of ITEPA 2003 section 660, but specifically excludes income support and jobseeker's allowance.