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

Meaning of residence

Section 608D defines what it means to be "resident" in a territory for the purposes of the rules in Chapter 2A concerning offshore income.

• A person is resident in a full treaty territory if they are liable to tax there by reason of domicile, residence or place of management.
• A person is not treated as resident if their tax liability in that territory only arises from income sourced there or capital located there.
• Where a territory outside the UK has no specific tax residence rules, a person who is resident there under that territory's general laws is still treated as resident for these purposes.
• The definition ensures consistent treatment whether a territory uses a formal tax residence concept or simply treats people as resident under its general law.