Income Tax (Trading and Other Income) Act 2005 section 577

Territorial scope of Part 5 charges

Section 577 sets out the territorial rules that determine when miscellaneous income falling within Part 5 of the Act is chargeable to UK income tax, depending on the residence status of the person receiving the income and the source of that income.

• UK residents are taxable on their miscellaneous income from all sources worldwide, whether or not the income originates in the United Kingdom.
• Non-UK residents are only taxable on miscellaneous income that comes from a source in the United Kingdom (or has a comparable connection to the UK where there is no identifiable source).
• In a split year, any miscellaneous income arising to a UK-resident individual during the overseas part of the year is treated as if it arose to a non-UK resident, meaning it is only taxable if it has a UK source.
• These rules are subject to any contrary provision elsewhere in Part 5 or the wider Income Tax Acts, and separate rules apply to receipts from intellectual property under section 577A.