Income Tax (Trading and Other Income) Act 2005 section 368

Territorial scope of Part 4 charges

Section 368 sets out the territorial rules that determine when savings and investment income falling within Part 4 of the Act is chargeable to income tax, based on the residence status of the person receiving the income and the location of its source.

• UK residents are taxable on Part 4 income from sources both inside and outside the United Kingdom
• Non-UK residents are only taxable on Part 4 income that comes from a source within the United Kingdom
• Where a UK-resident individual has a split year, income arising in the overseas part of that year is treated as if it arose to a non-UK resident
• Income that does not have a formal source but has a comparable connection to the United Kingdom is treated as having a UK source for these purposes