Income Tax Act 2007 section 835L

The independent broker conditions

Section 835L sets out the four conditions that must all be satisfied for a UK broker acting on behalf of a non-UK resident to qualify as an independent broker, thereby avoiding being treated as the non-UK resident's UK representative in relation to that transaction.

• The broker must be carrying on a genuine broking business at the time of the transaction, and the transaction must be carried out in the ordinary course of that business.
• The remuneration the broker receives for providing broking services to the non-UK resident must be at least the customary level for that class of business.
• The broker must not otherwise be treated as the UK representative of the non-UK resident in respect of other amounts chargeable to tax in the same tax year that fall outside the transaction income.
• All four conditions (A to D) must be met together; failure to satisfy any one of them means the broker does not qualify for the independent broker exemption.