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OT41510 | Non-Residents Working on the UK Continental Shelf: Double Taxation Agreements - Examples of Restrictions on UK Taxation

From HM Revenue & Customs · Oil Taxation Manual

  1. Activities on the UK Continental Shelf may not rank as activities carried on in the UK (see OT41540).

  2. UK taxing rights over profits may be restricted to those attributable to a permanent establishment in “the UK” (which may or may not include the UKCS) (see OT41540 & OT41550).

  3. UK taxing rights over professional income may be restricted to income attributable to a fixed base in “the UK” (which again may or may not include the UKCS) (see OT41540 & OT41550).

  4. Profits from the operation of ships in international traffic may only be chargeable to tax in another country.

  5. Profits from the operation of certain types of vessels (for example supply boats, tugs and anchor handling vessels) may only be chargeable to tax in another country (see OT41560).

  6. Profits from activities carried on in the UK for short periods may be specifically exempted from UK tax (see OT41560).

So if a person (whether an individual or company) claims treaty exemption from liability to UK tax normally chargeable under CTA09\S1313, ITTOIA05\S874 or ITEPA03\S41 it will be necessary to determine which particular agreement (if any) applies and the precise terms of the agreement.

This manual gives guidance only on matters particular to offshore activities only. It does not attempt to duplicate the material which appears in the International Manual. Those instructions should be consulted and the advice of Business International sought where necessary.