Income Tax (Trading and Other Income) Act 2005 section 269

Territorial scope of charge to tax

Section 269 sets out the territorial limits on when profits from UK and overseas property businesses are subject to income tax, depending on the residence status of the person carrying on the business.

• Profits from a UK property business are taxable regardless of whether the person running the business is a UK resident or a non-UK resident.
• Profits from an overseas property business are only taxable if the person running the business is a UK resident.
• A non-UK resident person is not charged to tax on income from property located outside the United Kingdom.
• Subsections (3) and (4) have been repealed by the Finance Act 2008; they previously dealt with Irish property income and the remittance basis for foreign income respectively.