http://www.legislation.gov.uk/ukpga/2009/10/section/52Finance Act 2009An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.texttext/xmlenStatute Law Database2026-05-28Expert Participation2026-05-21 Part 2 Income tax, corporation tax and capital gains tax<Emphasis>Residence and domicile</Emphasis>Exemption for certain non-domiciled persons521In Part 14 of ITA 2007 (income tax: miscellaneous rules), after Chapter 1 insert—Chapter 1AExemption for persons not domiciled in United KingdomIntroduction828AThis Chapter provides for an exemption from liability to income tax for an individual for a tax year if—athe individual is UK resident in the tax year but not domiciled in the United Kingdom in the tax year,bsection 809B does not apply to the individual for the tax year, andcconditions A to F in section 828B are met.Conditions to be met828B1Condition A is that in the tax year the individual has income from an employment the duties of which are performed wholly or partly in the United Kingdom.2Condition B is that, if the individual's income for the tax year consists of or includes relevant foreign earnings—athe amount of the relevant foreign earnings does not exceed £10,000, andball of that amount is subject to a foreign tax.3Condition C is that, if the individual's income for the tax year consists of or includes income that is relevant foreign income by virtue of section 830(2)(e) of ITTOIA 2005—athe amount of that income does not exceed £100, andball of that amount is subject to a foreign tax.4Condition D is that the individual has no other foreign income and gains for the tax year.5Condition E is that the individual would not for the tax year be liable to income tax at a rate other than the basic rate or the starting rate for savings if this Chapter did not apply to the individual for the tax year.6Condition F is that the individual does not make a return under section 8 of TMA 1970 for the tax year.The exemption828C1The exemption is given by deducting the relevant amount from what would otherwise be the amount of the individual's liability to income tax for the tax year under section 23.2“The relevant amount” is so much of the amount of the individual's liability to income tax as is attributable to the individual's foreign income or gains for the tax year.3But if for the tax year the individual's total income is reduced by any deductions which fall to be made at Step 3 of the calculation in section 23 from the individual's foreign income or gains for the tax year, subsection (2) has effect as if the individual's foreign income or gains for the tax year were reduced by the amount of the deductions.4And if the individual is entitled under—asection 788 of ICTA (double taxation arrangements: relief by agreement), orbsection 790(1) of that Act (relief for foreign tax where no double taxation arrangements),to a tax reduction in respect of the individual's foreign income or gains for the tax year, what would otherwise be the relevant amount is reduced by the amount of that reduction.Interpretation of Chapter828D1This section applies for the purposes of this Chapter.2“Employed” and “employment” have the same meaning as in the employment income Parts of ITEPA 2003: see Chapter 1 of Part 2 of that Act.3“Foreign income and gains”, in relation to an individual, means what would be the individual's foreign income and gains for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(2)).4“Foreign tax” means any tax chargeable under the law of a territory outside the United Kingdom.5“Relevant foreign earnings”, in relation to an individual, means what would be the individual's relevant foreign earnings for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(3)).2In section 2(14) of ITA 2007 (overview), after paragraph (a) insert—aaexemption for persons not domiciled in United Kingdom (Chapter 1A),.3The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.