OT41501 - Taxation of Non-Residents under Section 830 ICTA 1988: Double Taxation Agreements - Outline

OT40500+ describes the way in which ICTA\S830 extends UK tax jurisdiction so that, in general terms;

  1. Profits arising to an individual not resident in the UK are treated as profits from activities carried on in the UK if
  • there are any activities carried on in the territorial sea, or
  • exploration or exploitation activities are carried out on in the UK Continental Shelf.
  1. Profits arising to a company not resident in the UK are treated as profits of a trade carried on in the UK through a branch or agency if
  • exploration or exploitation activities are carried on in the UK, or
  • on the territorial sea, or
  • on the UK Continental Shelf.

However, if the individual or company concerned is a “resident of” (see INTM153050) a country with which the UK has a Double Taxation Agreement, the terms of that agreement may restrict the UK’s taxing rights by overriding domestic law (see INTM152060). See INTM152060 onwards for examples of typical restrictions.