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

Interaction with other general provisions

Section 608X ensures that certain exemptions and reliefs normally available to non-residents do not apply to UK-derived amounts arising from intangible property, so that those amounts remain fully chargeable to income tax.

• Where section 608A applies to a person for a tax year, the exempt income rules in Part 6 of ITTOIA 2005 do not shelter any UK-derived amounts arising to that person in that year.
• The cap on income tax liability for non-residents in Chapter 1 of Part 14 of ITA 2007 likewise does not apply to those UK-derived amounts.
• Total income tax liability is calculated by adding together the tax due on UK-derived amounts (ignoring the non-resident cap) and the tax due on all other income (with the non-resident cap applied as normal where it would otherwise be available).
• The section applies to anyone who falls within section 608A for the relevant tax year, regardless of whether the other disapplied provisions would otherwise have been relevant to them.