Income Tax Act 2007 section 934

Non-UK resident companies

Section 934 sets out the conditions under which a payment made to a non-UK resident company qualifies as an excepted payment, meaning income tax does not need to be deducted at source.

• The person beneficially entitled to the income must be a company that is not resident in the UK.
• That non-UK resident company must carry on a trade in the United Kingdom through a permanent establishment.
• The payment must be one that is brought into account when calculating the company's chargeable profits for corporation tax purposes.
• All three conditions must be met simultaneously for the payment to qualify as excepted.