Taxation (International and Other Provisions) Act 2010 Schedule 6 Part 1

New Chapters 2B and 2C of Part 14 of ITA 2007 (paragraphs 1–23)

Schedule 6 Part 1 establishes rules for determining when a UK branch or agency is treated as the "UK representative" of a non-UK resident person for income tax purposes, and sets out the tax obligations and liabilities that follow from that status.

• A UK branch or agency through which a non-UK resident carries on a trade, profession or vocation is generally treated as the non-UK resident's UK representative for income tax on that trade income — but exceptions apply for certain agents, brokers, investment managers, alternative finance counterparties and Lloyd's agents
• The UK representative shares the non-UK resident's income tax obligations (filing, assessment, collection and recovery), although safeguards limit criminal liability and civil penalties, and an independent agent can only be required to do what is practicable
• For investment managers, a "20% rule" requires that the manager and connected persons intend to hold a beneficial interest in no more than 20% of the non-UK resident's relevant disregarded income, with special modifications for collective investment schemes
• An independent agent acting as UK representative is entitled to be indemnified by the non-UK resident and may retain sums it holds on the non-UK resident's behalf to cover tax liabilities it has discharged

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