Income Tax Act 2007 section 835W

Exceptions: criminal offences and penalties etc

Section 835W limits the circumstances in which a UK representative of a non-UK resident can face criminal prosecution or civil penalties for the tax obligations they bear under section 835U.

• A UK representative can only be prosecuted for a criminal offence if they personally committed it, or consented to or connived in its commission.
• An independent agent acting for a non-UK resident is protected from civil penalties and surcharges where the wrongful act or omission was not theirs and they did not consent to or connive in it.
• The independent agent must also be able to demonstrate that any penalty or surcharge amount cannot be recovered from the funds they hold or control on behalf of the non-UK resident, after accounting for other indemnified liabilities.
• These protections ensure that UK representatives and independent agents are not unfairly penalised for failures that are genuinely outside their control or involvement.