Income Tax Act 2007 section 835D

Income tax chargeable on company's income: application

Section 835D clarifies that the rules in this Chapter about UK representatives do not apply to income tax charged on a company's own income — they only apply where a company is acting as a trustee.

• The Chapter's UK representative rules do not apply to income tax charged on a company in its own right (i.e. not as a trustee).
• A non-UK resident company trading in the UK through a permanent establishment pays corporation tax on its chargeable profits attributable to that establishment, not income tax.
• A non-UK resident company receiving other UK-source income (not through a permanent establishment) is charged to income tax, potentially limited by any applicable double taxation agreement.
• Where a non-UK resident company is beneficially entitled to UK-source income that is subject to income tax (rather than corporation tax), it will not have a UK representative in relation to that income.