Corporation Tax Act 2010 section 357LD

The independent investment manager conditions

Section 357LD sets out the five conditions (A to E) that must all be met for an investment manager acting on behalf of a company in Northern Ireland to be treated as an agent of independent status for the purposes of determining whether a company has a Northern Ireland regional establishment.

• The investment manager must be carrying on a business of providing investment management services at the time of the transaction, and the transaction must be carried out in the ordinary course of that business (Conditions A and B).
• The relationship between the company and the investment manager must be an arm's length relationship between independent businesses, assessed by reference to its legal, financial and commercial characteristics (Condition C).
• The requirements of the 20% rule, as set out in section 357LE, must be satisfied (Condition D).
• The remuneration the investment manager receives for the transaction must be no less than is customary for that class of business (Condition E).