Part 14Income tax liability: miscellaneous rules
Chapter 1Limits on liability to income tax of non-UK residents
Limit for non-UK resident individuals, trustees etc
814Meaning of “disregarded transaction income”
1
Subsection (2) applies if a non-UK resident carries on (alone or in partnership) a business through a broker in the United Kingdom.
2
Income is “disregarded transaction income”, subject to subsection (6), if—
a
it is transaction income, and
b
the independent broker conditions are met in relation to the transaction in question.
3
Subsection (4) applies if a non-UK resident carries on (alone or in partnership) a business through an investment manager in the United Kingdom.
4
Income is “disregarded transaction income”, subject to subsection (6), if—
a
it is transaction income, and
b
the independent investment manager conditions are met in relation to the transaction in question.
5
In this Chapter “transaction income”, in relation to a transaction carried out through a broker or investment manager in the United Kingdom on behalf of a non-UK resident, means income which arises to the non-UK resident from—
a
so much of the non-UK resident’s business carried on (alone or in partnership) through the broker or investment manager as relates to the transaction, or
b
property or rights which, as a result of the transaction, are used by, or held by or for, the broker or investment manager on behalf of the non-UK resident.
6
Income is not disregarded transaction income if it is chargeable to income tax in accordance with section 171(2) of FA 1993 (profits of the underwriting business of a member of Lloyd's).
7
This section needs to be read with—
section 817 (the independent broker conditions),
sections 818 to 824 (the independent investment manager conditions),
section 827 (meaning of “investment manager” and “investment transaction”), and
section 828 (transactions through brokers and investment managers).