Non-resident companies with a trading business in the UK are liable to pay UK Corporation Tax on their profits made through a permanent establishment/branch or agency. If the non-resident company is deemed liable to pay Corporation Tax, then its chargeable profits are: any trading income arising directly or indirectly through or from the permanent establishment/branch or agency, any income from property or rights used by, or held by or for, the permanent establishment/branch or agency except dividends or other distributions received from companies resident in the UK, and chargeable gains falling within TCGA92/S10B. There are, however, some differences in the taxation of non-resident companies as opposed to resident companies. For example, a non-resident company: is not liable to account for ACT on distributions made before to 6 April 1999, cannot have 'franked investment income', cannot have surplus franked investment income for the purposes of ICTA88/S242, cannot set trading losses against dividend income to augment its trading income for the purposes of absorbing losses brought forward. Any UK-source income received by a non-resident company which does not carry on a trade in the UK through a permanent establishment/branch or agency is subject to UK Income Tax. Any Income Tax due is calculated at the basic rate only without any allowances, subject to any applicable Double Taxation Agreement.