Income Tax Act 2007 section 861

Declarations of non-UK residence: settlements

Section 861 sets out the requirements for declarations of non-UK residence in relation to investments held through settlements, specifying what information must be provided to avoid the investment being treated as a relevant investment subject to deduction of tax at source.

• This section applies to investments that meet the settlement condition as defined in section 856(6) of the Act.
• A declaration of non-UK residence must be made in a prescribed or authorised format and must contain specified information for the investment to escape treatment as a relevant investment.
• If no valid declaration is made, the investment will be treated as a relevant investment, meaning income tax will be deducted at source from any interest or other returns paid on it.
• Special provisions apply in respect of Scottish partnerships, reflecting differences in how such partnerships are treated under Scots law compared to partnerships formed under English law.