Commentary on Sections Overview Overview Section 815: Limit on liability to income tax of non‑UK resident companies
2390.This section relates to the liability to income tax for a tax year of a non‑UK resident company which is liable otherwise than as a trustee. It is based on section 151(1), (3) and (4) of FA 2003.
2391.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 company would otherwise be liable.
2392.The combined effect of subsections (3) and (4) is that the non‑UK resident company is not liable to income tax in respect of disregarded company income 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.
2393.Subsection (4) is drafted in terms of the non‑UK resident company’s disregarded company income being left out of account, rather than in terms of its being deducted from total income as provided in section 151(1)(a)(i) of FA 2003.
2394.Section 151(1)(a)(ii) of FA 2003, which disregards reliefs to which a company is entitled under section 788 of ICTA, has been omitted. It is not appropriate to companies. See Change 120 in Annex 1.