RE1760 - Non-residents: The limit on liability for 1996-97 onwards: Outline

FA95 introduced a new rule which limits the tax charge on non residents. In summary the effect of the rule is that Income Tax chargeable on non-residents in respect of:

(i) most types of income from investments (except income from property in the UK)

(ii) income from trading in the UK through a qualifying broker or investment manager (see IM200 and IM210)

(iii) income from security benefits

is limited to the tax, if any, deducted at source provided that the income is not connected to a trade carried on through a UK representative (see AP162 - AP163). The rule applies generally for 1996-97 onwards and in respect of income within (ii) and (iii) above for 1995-96 also.