RE1764 - Non-residents: Meaning of excluded income

Excluded income is:

• investment income other than income from land, that is any income chargeable under Case III of Schedule D or Schedule F,
• profits or gains from disposals of certificates of deposit (ICTA88/S56),
• social security benefits chargeable under Schedule E ( ICTA88/S150, ICTA88/S617 (1) or FA94/S139 (1)),
• income from transactions through investment managers or brokers which is excluded from FA95/S126 by FA95/S127 (see IM210 and IM220),
• any other income designated as excluded by Treasury regulations,

subject to the proviso that it is not income in relation to which the non-resident has a UK representative within FA95/S126 (that is income connected with a trading branch or agency in the UK) or profits as a Lloyd's underwriter.

It should be noted that income chargeable under Case VI of Schedule D (except for profits or gains from disposals or certificates of deposits) is not excluded income; nor are sums deemed to be income by virtue of ICTA88/Part XVI which are paid in respect of absolute or limited interests in the residue of a UK estate.