Part 14Income tax liability: miscellaneous rules
Chapter 2Residence
831Foreign income of individuals in the United Kingdom for temporary purpose
1
Subsection (2) applies in relation to an individual if—
a
the individual is in the United Kingdom for some temporary purpose only and with no view to establishing the individual's residence in the United Kingdom, and
F1b
during the tax year in question the individual spends (in total) less than 183 days in the United Kingdom.
In determining whether an individual is within paragraph (a) ignore any living accommodation available in the United Kingdom for the individual's use.
F21A
In determining whether an individual is within subsection (1)(b) treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.
1B
But in determining that issue do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—
a
the individual departs from the United Kingdom on the next day, and
b
during the time between arrival and departure the individual does not engage in activities that are to a substantial extent unrelated to the individual's passage through the United Kingdom.
2
Apply the following rules in determining the individual's liability for income tax.
Rule 1
In relation to pension or social security income arising from a source outside the United Kingdom, treat the individual as non-UK resident for the purposes of the following—
a
Chapter 4 of Part 9 of ITEPA 2003 (tax on foreign pensions),
b
Chapter 5A of that Part (tax on pensions under registered pension schemes) but only if the income is an annuity under a registered pension scheme within paragraph 1(1)(f) of Schedule 36 to FA 2004,
c
Chapter 10 of that Part (tax on employment-related annuities),
d
Chapter 15 of that Part (tax on voluntary annual payments),
e
section 647 of ITEPA 2003 (meaning of “foreign residence condition”) but only in its application for the purposes of section 651 of that Act (which provides an exemption for tax under Chapter 14 of Part 9 of that Act), and
f
Chapter 6 of Part 10 of ITEPA 2003 (taxable foreign benefits).
See sections 566 and 657 of ITEPA 2003 for the definitions of “pension income” and “social security income”.
Rule 2
In relation to income arising from a source outside the United Kingdom, treat the individual as non-UK resident for the purposes of any charge under a provision mentioned in section 830(2) of ITTOIA 2005 (which contains a list of provisions under which relevant foreign income is charged).
In this rule “income” does not include income chargeable as a result of section 844 of ITTOIA 2005 (unremittable income: income charged on withdrawal of relief after source ceases).
3
Paragraph (e) of Rule 1 in subsection (2) applies only if—
a
the individual makes a claim as mentioned in section 647(3)(a) of ITEPA 2003, and
b
the Commissioners are satisfied that subsection (2) of this section applies in relation to the individual.
4
Subsection (5) applies in relation to an individual if subsection (2) would have applied in relation to the individual but for subsection (1)(b).
5
Apply the rules set out in subsection (2) in determining the individual's liability for income tax.
But—
a
instead of treating the individual as non-UK resident in relation to the income and for the purposes mentioned in those rules, treat the individual as UK resident, and
b
ignore subsection (3).