Commentary on Sections Overview Overview Section 811: Limit on liability to income tax of non‑UK residents
2373.This section relates to the liability to income tax for a tax year of non‑UK residents other than companies and of non‑UK resident companies liable as trustees. It is based on section 128(1), (2), (4) and (12) of FA 1995.
2374.This section does not create any liability to income tax but rather sets a limit on the amount of income tax to which the non‑UK resident would otherwise be liable.
2375.The combined effect of subsections (4) and (5) is that the non‑UK resident is not liable to income tax in respect of disregarded income (see section 813), except so far as income tax is deducted or treated as deducted from it or is paid in respect of it, or it carries a tax credit.
2376.Subsection (5)(a) is drafted in terms of the non‑UK resident’s disregarded income being left out of account, rather than in terms of its being deducted from total income as provided in section 128(1)(a)(i) of FA 1995.
2377.Subsection (5)(b) provides that personal reliefs are to be left out of account. A non‑UK resident may be entitled to such reliefs under section 278(2)(a) of ICTA, under section 56 or 460 of this Act or by virtue of a double taxation agreement. See the overview commentary on Part 3 for the interrelation of section 278(2)(a) of ICTA and sections 56 and 460 of this Act.
2378.All the reliefs to which section 278 of ICTA and sections 56 and 460 of this Act apply are listed in subsection (6).