Taxation (International and Other Provisions) Act 2010 Explanatory Notes

Overview

1185.This Schedule inserts new Chapters 2B and 2C in Part 14 of ITA and new Part 7A in TCGA, rewriting sections 126 and 127 of, and Schedule 23 to, FA 1995. Those provisions determine who is a UK representative of a non-UK resident and set out the liabilities and obligations of a UK representative in respect of the assessment, collection and recovery of income tax and capital gains tax chargeable on the non-UK resident.

1186.The new Chapter 2B of Part 14 of ITA rewrites sections 126 and 127 of FA 1995, so far as those sections determine whether a branch or agency in the United Kingdom through which a non-UK resident carries on a trade, profession or vocation is the UK representative of that non-UK resident in relation to the non-UK resident’s income from the trade, profession or vocation so carried on.

1187.The new Chapter 2C of Part 14 of ITA rewrites Schedule 23 to FA 1995 so far as that Schedule imposes obligations on the UK representative in respect of the assessment, collection and recovery of income tax chargeable on the non-UK resident.

1188.Chapter 1 of the new Part 7A of TCGA is concerned with a person who, in accordance with Chapter 2B of Part 14 of ITA, is the UK representative of a non-UK resident in relation to the income of the non-UK resident from a trade, profession or vocation carried on through a branch or agency in the United Kingdom. It provides that the same person is also the UK representative of the non-UK resident in relation to chargeable gains accruing to the non-UK resident on the disposal of such assets referred to in section 10 of TCGA as relate to the trade, profession or vocation so carried on or to the branch or agency.

1189.Chapter 2 of the new Part 7A of TCGA rewrites Schedule 23 to FA 1995 so far as that Schedule imposes obligations on the UK representative in respect of the assessment, collection and recovery of capital gains tax chargeable on the non-UK resident under section 10 of TCGA.

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