Commentary

D4.122 Basis of liability to income tax—non-resident companies

Corporate tax
Corporate tax | Commentary

D4.122 Basis of liability to income tax—non-resident companies

Corporate tax | Commentary

D4.122 Basis of liability to income tax—non-resident companies

The rules described in this article will not apply if different rules are included in the relevant double taxation agreement; in such a case the rules in the agreement take precedence.

Whilst a non-resident company is chargeable to corporation tax on profits arising from a trade of dealing in or developing UK land (B5.255) or any other trade carried on through a permanent establishment in the UK1, it is instead subject to income tax on any other income arising within the UK which is not chargeable to corporation tax2.

If the company is trading in the UK, but not through a UK PE, the UK's domestic law imposes an income tax charge on the profits of the UK trade. However, if the company's home state has a double tax treaty with the UK, this charge is likely to be removed.

If the company is not

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial