Clause 150 - Non-resident companies: extent
Finance Bill
4:30 pm
Mr Stephen O'Brien (Eddisbury, Conservative)
I beg to move amendment No. 97, in
clause 150, page 90, leave out lines 5 to 7.
This is a probing amendment relating to non-resident companies and the extent of charge to income tax. The clause provides that a non-resident is subject to income tax by withholding only in the case of income falling within subsection (2), rather unhelpfully referred to as
''income to which this section applies''
and on other UK-source income in respect of which it is not liable to corporation tax.
I tabled an amendment to probe the position, because it is not clear to me why, on calculating the tax on income falling within paragraph (b)—other UK-source income in respect of which a non-resident is not liable to corporation tax—one has to disregard relief under double tax treaty as required by subsection (1)(a)(ii). There is probably a sound technical explanation, but it escapes me, so I look forward to hearing what the Paymaster General has to say.