Non-residents in the UK are taxed on:

• A. Worldwide income
• B. UK income only
• C. Capital gains
• D. Inheritance tax

Answer: (B)

Non-residents pay tax on income only if that income arises in the United Kingdom. In other words, UK income tax for someone who is not resident is charged on UK-sourced earnings (such as a UK salary, rental income from UK property, or pension paid from UK sources). Foreign income is not taxed here under the standard rule. Capital gains and inheritance tax follow different rules and are not the same as the ongoing income tax treatment for non-residents. So the statement that non-residents are taxed on UK income only reflects the basic rule for income tax.