Income Tax Act 2007 section 835X

Indemnities

Section 835X protects independent agents acting as UK representatives of non-UK residents by giving them rights to recover tax liabilities they have paid on behalf of those non-UK residents.

• An independent agent who has paid a non-UK resident's tax liability (arising under section 835U) is entitled to be fully indemnified by the non-UK resident for that amount.
• The agent may retain sufficient sums from money otherwise owed or held on behalf of the non-UK resident to cover any tax liabilities already discharged or still outstanding.
• The sums available for retention include both amounts the agent owes to the non-UK resident and amounts received by the agent on the non-UK resident's behalf.
• These protections ensure agents are not left out of pocket when fulfilling their obligations as UK representatives under the income tax rules.