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Usually, non-residents are liable to UK income tax on their UK source income for the tax year.

There are two methods by which the income tax liability can be calculated:

1. Ìý

   •ÌýÌýÌýÌý the normal rules (see E6.125), or

2. Ìý

   •ÌýÌýÌýÌý using the rules in ITA 2007, ss 811–828 that limit on the UK income tax liability of a non-resident

The non-resident is free to use the method which produces the lowest amount of tax payable¹.

The rules limiting the UK income tax liability of a non-resident restrict the amount of tax payable to²:

1. Ìý

   •ÌýÌýÌýÌý Amount A – the tax deducted at source (if any) from 'disregarded income', plus

2. Ìý

   •ÌýÌýÌýÌý Amount B – the tax due on all taxable UK source income, excluding disregarded income. The UK income tax is calculated without the benefit of any personal allowances to which the non-resident might otherwise be entitled

See E6.126 for a detailed discussion of the rules. The commentary below examines the definition of 'disregarded income'.