Income Tax Act 2007 section 835G

Agents

Section 835G limits when a UK-based agent of a non-UK resident is treated as that person's UK representative, by excluding one-off or irregular transactions from the agency relationship.

• Where a non-UK resident carries on business (alone or in partnership) through a UK agent, the agent is not automatically the non-UK resident's UK representative for all purposes
• If the agent carries out transactions that are not part of a regular agency arrangement, those transactions are classed as "disregarded transactions"
• Income arising from disregarded transactions — or from property and rights used or held by the agent as a result of such transactions — falls outside the UK representative rules
• The effect is that the non-UK resident has no UK representative in respect of that income, potentially removing the obligation for UK tax to be collected through the agent on those amounts