Income Tax Act 2007 section 817

The independent broker conditions

Section 817 sets out the conditions that must be met for a UK broker acting on behalf of a non-UK resident to qualify as an "independent broker", so that certain transaction income can be disregarded for income tax purposes.

• Five conditions (A to E) are defined, of which different combinations apply depending on whether the non-UK resident is an individual (section 813) or a company (section 816).
• The broker must be genuinely carrying on a broking business, the transaction must arise in the ordinary course of that business, and the broker's remuneration must be at least the customary rate for that class of business.
• For individuals (section 813), the broker must not be treated as the non-UK resident's UK representative in relation to any other income or capital gains in the same tax year.
• For companies (section 816), the broker must not be treated as a permanent establishment of the non-UK resident company in relation to any other transaction of any kind in the same accounting period.