Income Tax Act 2007 section 835H

Brokers

Section 835H deals with the circumstances in which a UK-based broker, through whom a non-UK resident carries on business, is not treated as the UK representative of that non-UK resident in respect of transaction income.

• The section applies where a non-UK resident carries on business (alone or in partnership) through a broker in the United Kingdom.
• The broker is not the UK representative of the non-UK resident in respect of transaction income from a transaction carried out through the broker, provided the independent broker conditions in section 835L are satisfied.
• "Transaction income" means income arising from or as a result of a transaction carried out through the UK broker on behalf of the non-UK resident, as defined in section 814(5).
• If the independent broker conditions are not met, the broker may be treated as the UK representative of the non-UK resident under section 835E, with the tax obligations that follow.