Income Tax (Trading and Other Income) Act 2005 section 608A

Charge to tax on UK-derived amounts

Section 608A establishes the basic conditions under which a tax charge arises on UK-derived amounts received by non-UK residents who are also not resident in a full treaty territory.

• A charge to income tax applies when a person who is not resident in the UK, or in any full treaty territory, receives amounts derived from the UK during a tax year.
• The person must be non-resident throughout the entire tax year — not just at a single point in time — for the charge to apply.
• Definitions of key terms (such as residence, UK-derived amounts, and intangible property) are found in sections 608D to 608H, and exemptions from the charge are set out in sections 608J to 608N.
• For all purposes in the Tax Acts, references to income from a source in the United Kingdom include UK-derived amounts caught by this provision.