Part 14Income tax liability: miscellaneous rules

Chapter 2BUK representative of non-UK resident

F1Persons who are not UK representatives

835GAgents

(1)

This section applies if a non-UK resident carries on (alone or in partnership) a business through an agent in the United Kingdom.

(2)

The agent is not the UK representative of the non-UK resident in relation to an amount within section 835E(2) arising to the non-UK resident from—

(a)

so much of the non-UK resident's business as relates to disregarded transactions, or

(b)

property or rights which, as a result of disregarded transactions, are used by, or held by or for, the agent on behalf of the non-UK resident.

(3)

“Disregarded transactions” are transactions—

(a)

carried out through the agent in the United Kingdom, and

(b)

in respect of which the agent does not act in the course of carrying on a regular agency for the non-UK resident.

F2835HBrokers

(1)

This section applies if a non-UK resident carries on (alone or in partnership) a business through a broker in the United Kingdom.

(2)

The broker is not the UK representative of the non-UK resident in relation to an amount within section 835E(2) if—

(a)

the amount is transaction income in relation to a transaction carried out through the broker in the United Kingdom on behalf of the non-UK resident, and

(b)

the independent broker conditions are met in relation to the transaction (see section 835L).

(3)

In subsection (2) “transaction income”, in relation to a transaction carried out through a broker in the United Kingdom on behalf of a non-UK resident, has the same meaning as in Chapter 1 (see section 814(5)).

F3835IInvestment managers

(1)

This section applies if a non-UK resident carries on (alone or in partnership) a business through an investment manager in the United Kingdom.

(2)

The investment manager is not the UK representative of the non-UK resident in relation to an amount within section 835E(2) if—

(a)

the amount is transaction income in relation to an investment transaction carried out through the investment manager in the United Kingdom on behalf of the non-UK resident, and

(b)

the independent investment manager conditions are met in relation to the investment transaction (see section 835M).

(3)

In subsection (2) “transaction income”, in relation to a transaction carried out through an investment manager in the United Kingdom on behalf of a non-UK resident, has the same meaning as in Chapter 1 (see section 814(5)).

F4835JPersons acting under alternative finance arrangements

(1)

Subsection (2) applies if an amount within section 835E(2) arising to a non-UK resident consists of alternative finance return.

(2)

Neither of the following is the UK representative of the non-UK resident in relation to the amount—

(a)

the other party to the alternative finance arrangements,

(b)

any other person acting for the non-UK resident in relation to the alternative finance arrangements.

(3)

In subsection (1) “alternative finance return” means alternative finance return within the application of section 564I, 564K or 564L(2) or (3).

(4)

In subsection (2) the reference to “the alternative finance arrangements” is a reference to the alternative finance arrangements under which the alternative finance return mentioned in subsection (1) arises.

F5835KLloyd's agents

(1)

This section applies if—

(a)

a non-UK resident (“X”) is a member of Lloyd's, and

(b)

an amount within section 835E(2) arises to X from X's underwriting business.

(2)

A person who has been X's members' agent or the managing agent of the syndicate in question is not the UK representative of X in relation to the amount or to matters connected with the amount.

(3)

For the purposes of this section—

(a)

X is a member of Lloyd's if X is a member within the meaning of Chapter 3 of Part 2 of FA 1993, and

(b)

“members' agent” and “managing agent” are to be construed in accordance with section 184 of that Act.