Income Tax Act 2007 section 835F

Trade or profession carried on in partnership

Section 835F sets out how the UK representative rules apply when a non-UK resident carries on a trade or profession in the United Kingdom through a partnership arrangement.

• Where a non-UK resident partner operates a trade or profession in the UK through a branch or agency within a partnership, that branch or agency is treated as the non-UK resident's UK representative in relation to their share of UK profits.
• Where a partnership includes both UK-resident and non-UK resident members and carries on a trade or profession in the UK (whether directly or through a branch or agency), the partnership itself is also treated as the UK representative of the non-UK resident partner.
• Because the partnership is treated as the UK representative, all partners become jointly liable for income tax on the non-UK resident partner's share of the UK profits.
• These rules can apply simultaneously — a branch or agency may be the UK representative at the same time as the partnership itself is also treated as the UK representative.