Corporation Tax Act 2010 section 1145

The independent broker conditions

Section 1145 sets out the four conditions that must all be met for a UK-based broker acting on behalf of a non-UK resident company to qualify as an agent of independent status, and therefore not constitute a permanent establishment of that company in the United Kingdom.

• The broker must be genuinely carrying on a brokerage business at the time of the transaction, and the transaction must be carried out in the ordinary course of that business.
• The broker's remuneration for the transaction must be at least equal to the customary rate for that class of business.
• The broker must not otherwise be treated as a permanent establishment of the non-UK resident company in respect of any other transaction in the same accounting period.
• All four conditions (A to D) must be satisfied for the broker to be regarded as an independent agent; failure to meet any one condition means the broker may be treated as a permanent establishment.