Corporation Tax Act 2010 section 357LC

The independent broker conditions

Section 357LC sets out the four conditions that must all be satisfied for a broker acting on behalf of a company in Northern Ireland to be treated as an agent of independent status for the purposes of the Northern Ireland rate of corporation tax rules.

• The broker must be genuinely carrying on a brokerage business at the time of the transaction (Condition A), and the transaction must be carried out in the ordinary course of that business (Condition B).
• The remuneration the broker receives for providing brokerage services to the company must be at least equal to the customary rate for that class of business (Condition C).
• The broker must not otherwise be treated as a Northern Ireland Regional Establishment (NIRE) of the company in relation to any other transaction in the same accounting period (Condition D).
• All four conditions must be met; if any one of them is not satisfied, the broker will not qualify as an agent of independent status in relation to that transaction.