Replaced by new DTA, which applies in UK from 1st April 2003 for
CT, 6th April 2003 for IT and 1st January 2004 for PRT. For US
withholding taxes it applies from 1st May 2003 and for other US
taxes from 1st January 2004. See DT19937.
(1) Profits derived by an enterprise of a Contracting State
from the operation of ships or aircraft in international traffic
shall be taxable only in that State.
(2) Notwithstanding any other provision of this Convention,
profits which a national of the United States not resident in the
United Kingdom or a United States corporation derives from
operating ships documented or aircraft registered under the laws of
the United States shall be exempt from United Kingdom tax.
(3) For the purpose of this Article, profits from the
operation of ships or aircraft include profits derived from the
rental on a bareboat basis of ships or aircraft if such rental
income is incidental to other income described in paragraph (1) of
this Article.
(4) Notwithstanding the provisions of Article 7 (Business
profits) profits of an enterprise of a Contracting State from the
use, maintenance or rental of containers (including trailers and
related equipment for the transport of containers) used for the
transport of goods or merchandise shall be taxable only in that
State, except where such containers are used for the transport of
goods or merchandise solely between places within the other
Contracting State.
(5) The provisions of this Article shall apply also to
profits derived by an enterprise of a Contracting State from
participation in a pool, a joint business or an international
operating agency.
(6) Gains derived by an enterprise of a Contracting State
from the alienation of ships, aircraft or containers owned and
operated by the enterprise, the income from which is taxable only
in that State, shall be taxed only in that State.
