Limit on income tax liability of non-residents

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note covers the statutory rules that limit the income tax liability of non-resident individuals. For details of when an individual is considered to be non-resident in the UK, see the Determining residence status (2013/14 onwards) guidance note.

This guidance note considers the UK income tax position of non-residents. For the UK capital gains tax position, see the Non-resident capital gains tax (NRCGT) on UK land ― individuals and UK capital gains tax liability of temporary non-residents guidance notes and Simon’s Taxes C1.602 (non-residents with a UK branch or agency).

Overview

Non-resident individuals with UK source income can either:

•
be taxed on UK source income under the normal rules. If so, they are entitled to a personal allowance (so long as they are resident in a territory covered by ITA 2007, s 56, see the Personal allowance guidance note), or
•
use the rules on limiting UK tax liability in ITA 2007, ss 811–828 (referred to as the ‘special rules’ in this guidance note), but under these rules, they cannot benefit from the

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