RE1700 - Non-residents: outline of the subject
A non-resident individual is liable to UK tax at the appropriate rates on income arising in the UK although certain income may be statutorily exempt or relieved under a double taxation agreement.
There are special rules for dealing with the liability of individuals who are not resident but have income which is chargeable to United Kingdom income tax. This chapter covers some of the special rules. In particular it tells you about
- where to get information about personal allowances for non-residents - see Residence, Domicile and Remittance Basis Manual, RDRM10300
- arrangements for paying annuities without deduction of tax
- exempting certain dividends and interest on certain securities from United Kingdom income tax
- the tax consequences of an individual coming to live permanently in the United Kingdom, or leaving to live abroad permanently.
The receiving office will handle claims to relief and or exemption and will give instructions where the relief is to be given against income assessed locally.
The receiving office will handle claims to relief and or exemption and will give instructions where the relief is to be given against income assessed locally.
An individual is normally not resident if he does not come to the United Kingdom at all during a tax year. An individual who spends any period in the United Kingdom may or may not be resident. Advice on deciding the residence status of an employee is at EIM42800 onwards. All other cases where the taxpayer claims to be not resident should be referred to CAR PTI Advisory residence and domicile technical team.
Explanatory booklet HMRC6, ‘Residence, Domicile and the Remittance Basis’ is available from the HMRC internet. You should direct the taxpayer or accountant to the booklet if a query is raised about an individual's `residence status' and how this and domicile, affect his or her tax liability.
