The Taxation of Income from Land (Non-residents) Regulations 1995

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision, with effect from 6th April 1996, in relation to the taxation of income of a Schedule A business (income from land) carried on by a person whose usual place of abode is outside the United Kingdom (“non-resident”). The Regulations arrange for tax on that income to be collected in certain circumstances from the person acting as agent for the business concerned, or from a person by whom rent is payable to the non-resident.

Regulation 1 provides for citation, commencement and effect, and regulation 2 contains definitions.

Regulation 3 prescribes the persons who, as agents for a non-resident or as persons by whom rent is payable to a non-resident, are liable in the circumstances specified in the regulation to make payments to the Board of Inland Revenue (“the Board”) in respect of tax on the income of the non-resident’s Schedule A business.

Regulation 4 contains definitions for the purposes of regulation 3.

Regulation 5 makes provision enabling a partnership to be a person prescribed by regulation 3.

Regulation 6 provides that an agent acting in relation to the Schedule A businesses of several non-residents through branches of his business may, if approved by the Board, be treated for the purposes of these Regulations as a separate person for each branch.

Regulation 7 makes provision requiring agents who are prescribed persons to register with the Board.

Regulation 8 provides for the calculation of the amount of tax payable quarterly by a prescribed person by whom rent is payable to a non-resident.

Regulation 9 provides for the calculation of the amount of tax payable quarterly by an agent who is a prescribed person, and also provides for repayment of tax to the agent in certain circumstances.

Regulation 10 provides for the making of quarterly returns by prescribed persons and for tax payable in respect of the quarter to be paid with the return. The regulation also makes provision for interest on unpaid tax, and for assessments in respect of amounts omitted from returns.

Regulation 11 makes provision for annual returns by prescribed persons.

Regulation 12 provides that after the end of each year ended 31st March the prescribed person shall provide the non-resident with a certificate specifying the amount of tax which the prescribed person is liable to pay for that year in respect of the income of the non-resident’s Schedule A business.

Regulations 13 to 15 provide for information to be furnished to the Board by prescribed persons and for inspection and keeping of records.

Regulation 16 restricts the use of information obtained by the Board under regulation 13 or 14.

Regulation 17 provides that a non-resident whose application for that purpose is approved by the Board may receive income in respect of his Schedule A business without the obligation on the part of a prescribed person to account for tax on that income.

Regulation 18 enables the Board to require a non-resident to furnish information in order to review their approval of his application under regulation 17.

Regulation 19 enables the Board to withdraw their approval of an application under regulation 17.

Regulations 20 and 21 apply with modifications section 59A of the Taxes Management Act 1970 (payments on account of tax under self-assessment) to payments of tax by prescribed persons.