B5.317 Certain royalties etc where usual place of abode of owner is abroad
For payments made on or after 28 June 2016 ITA 2007, s 906 imposes a requirement to deduct income tax at the basic rate from the payment of any royalties or other sums payable in respect the use of, or right to use, intellectual property1 where the payment is chargeable to income or corporation tax, and the owner's usual place of abode is outside the UK. The requirement also applies where there is a periodic payment in respect of intellectual property and the usual abode of a past owner who has assigned the rights, but still receives income in respect of it, is outside the UK2.
There is no duty to deduct where the payment is made in respect of copies of works or articles, which have been exported from the UK for distribution outside the country3.
For these purposes, 'intellectual property' means4:
• copyright of literary, artistic or scientific work (but not
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