906Certain royalties etc where usual place of abode of owner is abroadU.K.
(1)This section applies to any payment made in a tax year if—
(a)it is a payment of any royalties, or sums payable periodically, in respect of a relevant intellectual property right (see section 907),
(b)it is one that is charged to income tax or corporation tax, and
(c)condition A or B is met.
(2)Condition A is that the usual place of abode of the owner of the right is outside the United Kingdom.
(3)Condition B is that—
(a)a person (“the seller”) has assigned the right to another person,
(b)the usual place of abode of the seller is outside the United Kingdom,
(c)the seller is entitled to periodical payments in respect of the right, and
(d)the payments are in respect of that entitlement.
(4)But this section does not apply if the payment is made in respect of copies of works, or articles, which have been exported from the United Kingdom for distribution outside the United Kingdom.
(5)The person by or through whom the payment is made must, on making it, deduct from it a sum representing income tax on it at the basic rate in force for the tax year.
(6)See—
(a)Chapter 8 which makes special provision in relation to royalties (double taxation arrangements: deduction at treaty rate and EU companies: discretion to pay gross), and
(b)Chapter 11 (payments between companies etc) for an exception from the duty to deduct sums representing income tax under this section.
(7)For provision about the collection of income tax in respect of a payment from which a sum must be deducted under this section—
(a)see Chapter 15 if the person making the payment is a UK resident company, and
(b)otherwise see Chapter 16.
(8)If a payment to which this section applies is also one to which a provision of Chapter 6 applies, it is treated as not being a payment to which a provision of Chapter 6 applies.