Part III Income Tax, Corporation Tax and Capital Gains Tax
Change of residence and non-residents
126UK representatives of non-residents.
1
Schedule 23 to this Act shall have effect for imposing obligations and liabilities in relation to income tax F2... and capital gains tax on a branch or agency which, under this section, is the UK representative of a person who is not resident in the United Kingdom (“the non-resident”).
2
Subject to the following provisions of this section and to section 127 below, a branch or agency in the United Kingdom through which the non-resident carries on (whether solely or in partnership) any trade, profession or vocation shall, for the purposes of this section and Schedule 23 to this Act, be the non-resident’s UK representative in relation to the following amounts, that is to say—
a
the amount of any such income from the trade, profession or vocation as arises, directly or indirectly, through or from that branch or agency;
b
the amount of any income from property or rights which are used by, or held by or for, that branch or agency; F3and
c
F5d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
For the purposes of this section and Schedule 23 to this Act, the non-resident’s UK representative in relation to any amount shall continue to be the non-resident’s UK representative in relation to that amount even after ceasing to be a branch or agency through which the non-resident carries on the trade, profession or vocation in question.
4
For the purposes of this section and Schedule 23 to this Act, the non-resident’s UK representative in relation to any amount shall be treated, where he would not otherwise be so treated, as if he were a separate and distinct person from the non-resident.
5
Where the branch or agency through which the non-resident carries on the trade, profession or vocation is one carried on by persons in partnership, the partnership, as such, shall be deemed for the purposes of this section and Schedule 23 to this Act to be the non-resident’s UK representative in relation to the amounts mentioned in subsection (2) above.
C16
Where a trade or profession carried on by the non-resident through a branch or agency in the United Kingdom is one carried on by him in partnership, the trade or profession carried on through that branch or agency shall be deemed, for the purposes of this section and Schedule 23 to this Act, to include the deemed trade or profession from which the non-resident’s share in the partnership’s profits, gains or losses is treated for the purposes of section 111 or 114 of the Taxes Act 1988 as deriving.
7
For the purposes of this section and Schedule 23 to this Act where—
a
a trade or profession carried on by the non-resident in the United Kingdom is one carried on by him in partnership, and
b
any member of that partnership is resident in the United Kingdom,
the deemed trade or profession from which the non-resident’s share in the partnership’s profits, gains or losses is treated for the purposes of section 111 or 114 of the Taxes Act 1988 as deriving shall be treated (in addition, where subsection (6) above also applies, to being treated as included in a trade or profession carried on through any such branch or agency as is mentioned in that subsection) as a trade carried on in the United Kingdom through the partnership as such.
F68
In this section, “branch or agency” means any factorship, agency, receivership, branch or management.
9
This section and Schedule 23 to this Act apply—
a
for the purposes of income tax and capital gains tax, in relation to the year 1996-97 and subsequent years of assessment; F7...
F7b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F110
This section does not apply in relation to income tax chargeable on income of a company otherwise than as a trustee.