Taxation of Chargeable Gains Act 1992 section 1B

Non-UK residents: UK branch or agency

Section 1B defines when a non-UK resident person is regarded as having a UK branch or agency for capital gains tax purposes, and when an asset is treated as having a relevant connection to that branch or agency.

• A person has a UK branch or agency if they carry on a trade, profession or vocation in the UK through a branch or agency located here.
• An asset has a relevant connection to the UK branch or agency if it is or was used for the trade or for the branch or agency, or was acquired for use by the branch or agency.
• The charge does not apply where the person is exempt from UK income tax on the branch or agency profits under a double taxation agreement.
• For professions or vocations, assets used solely before 14 March 1989 are excluded from having a relevant connection to the UK branch or agency.