SolvedINTM261030 | Non-residents trading in the UK: Introduction: Relevant legislation
From HM Revenue & Customs · International Manual
Domestic legislation
Listed below is the current legislative guidance covering non-residents trading in the UK.
For a more detailed discussion of the application of corporation tax (‘CT’) and income tax (‘IT’) see INTM262300.
For a table of origin of the provisions within the Corporation Taxes Act (‘CTA’) 2009 & 2010 please see INTM261040.
Corporation Tax:
| Legislation | Description | INTM (or other) reference |
|---|---|---|
| S5 and S19 CTA 2009 | Scope of charge | See INTM262300 |
| S20 - 32 CTA 2009 | Calculation/attribution of profits | See INTM267040 |
| S1259(4) CTA 2009 | Calculation of non-resident partner’s profit and loss | See INTM265040 |
| S969 to S972 CTA 2010 | Collection of CT from representatives of non-UK resident companies | See INTM268000 |
| S973 to S980 CTA 2010 | Recovery of unpaid CT due from non-UK resident companies | See INTM268000 |
| S1141 to S1153 CTA 2010 | Definition of Permanent Establishment (‘PE’) | See INTM264000 |
| FA 1998 Sch. 18 | Duty to give notice of chargeability | See INTM268030 |
| Part 8ZB CTA 2010 | CT: Transactions in UK land | See BIM60510 |
Income Tax:
| Legislation | Description | INTM (or other) reference |
|---|---|---|
| S6(2) ITTOIA 05 | Scope of charge | See INTM262300 |
| S810 to S828/Chapter 1 ITA 2007 | Limit on liability to IT of non-UK residents | See INTM269180 |
| S835C to S835S/Chapter 2B ITA 2007 (as inserted by S370 TIOPA 2010) | UK representative of non-UK resident for IT purposes | See INTM268000 |
| S835T to S835Y/Chapter 2C ITA2007 (as inserted by S370 TIOPA 2010) | IT obligations and liabilities imposed on UK representatives | See INTM268000 |
| Part 9A ITA 2007 | IT: Transactions in UK land | See BIM60510 |
Treaty Law
| Article and treaty | Description | INTM reference |
|---|---|---|
| Article 5 – OECD Model | Definition of PE | See INTM264000 |
| Article 7 – OECD Model | Attribution of profits | See INTM267000 |
| Double Taxation Treaty | Normally based on Article 5 and 7 of the model treaty | See INTM264000/267000 |
Tax Law Re-write
The re-write of the corporation tax legislation did not change its effect - the charging provisions which were in ICTA 1988 are now in CTA 2009, and the PE definition, IME, and recovery provisions are now in CTA 2010. For accounting periods ending before 1 April 2009 please refer to the old legislative references (see INTM261040 for derivation table).
Legislative reform in 2025/26
The legislation for the PE definition and the attribution of profits was updated to align more closely with the OECD Model Tax Convention and Commentary. The legislative references in the table above remain the same, but with some of the provisions having been amended. The updated legislation applies for chargeable periods beginning on or after 1 January 2026.