Commentary on Sections Overview Overview Section 831: Foreign income of individuals in the United Kingdom for temporary purpose
2472.This section provides that an individual who is in the United Kingdom for a temporary purpose and stays there for only a limited period is not to be treated as UK resident for the purposes of certain charges to income tax on income from a source outside the United Kingdom. It is based on section 336(1), (1A) and (3) of ICTA.
2473.The provisions of section 336(2) of ICTA which deals with employment income of individuals in the United Kingdom for a temporary purpose are contained in section 832.
2474.The language of section 336(1) of ICTA dates back to Napoleonic times, while that of section 336(2) dates back only just over 50 years. These differences in language have been preserved where necessary.
2475.Subsection (1), which describes to whom this section applies, makes clear that this section relates only to the residence status of individuals and the term “individual” is used throughout this section in place of “person” in section 336 of ICTA.
2476.Subsection (1)(a) retains the distinction between section 336(1)(a) of ICTA which refers to the person not being in the United Kingdom (emphasis added):
“with any view or intent of establishing his residence there”
and section 336(2) of that Act which refers to the person not being in the United Kingdom (emphasis added):
“with the intention of establishing his residence there.”
2477.Subsection (1)(a) refers only to “view” and omits reference to “intent” on the basis that “view” is wider than “intent” or “intention”.
2478.Section 336(1)(b) of ICTA refers to the person having:
“not actually resided in the United Kingdom at one time or several times for a period equal in the whole to six months in any year of assessment”
“while section 336(2) of that Act refers to the person having:”
not in the aggregate spent at least six months in the United Kingdom in the year of assessment.
2479.Subsection (1)(b) retains the expression “actually resided” rather than adopting the expression “spent”, as “actually resided” may not in every circumstance be synonymous with “spent”. But the language of section 336(1)(b) of ICTA relating to the determination of the period has been modernised, including by substituting reference to 183 days for the reference to six months in section 336(1)(b) of ICTA. See Change 124 in Annex 1.
2480.Subsection (2) restates the provisions listed in section 336(1A) of ICTA. Rule 1 is based on section 336(1A)(b) and (c) and Rule 2 on section 336(1A)(a) of that Act.
2481.The reference in each Rule to treating the individual as non‑UK resident follows the approach of section 336(2) of ICTA and replaces the reference in section 336(1) of that Act to the person not being charged “as a person residing in the United Kingdom”.
2482.The words “income arising from a source outside the United Kingdom” in both Rules give effect to the words “profits or gains received in respect of possessions or securities out of the United Kingdom” in section 336(1) of ICTA.
2483.Subsection (3)supplements paragraph (e) of Rule 1 with a reminder that a claim has to have been made under section 647 of ITEPA and to have been accepted by the Commissioners for Her Majesty’s Revenue and Customs for the individual to have the benefit of the exemption in section 651 of that Act.
2484.Subsections (4) and (5) are based on the final words of section 336(1)(b) of ICTA:
“but if any such person resides in the United Kingdom for such a period he shall be so chargeable for that year.”