Taxation of Chargeable Gains Act 1992 section 271I

Indemnities

Section 271I protects independent agents who act as UK representatives of non-UK residents by giving them the right to recover tax liabilities they have paid on behalf of those non-UK residents, and to hold back funds to cover such liabilities.

• An independent agent who has paid a non-UK resident's capital gains tax liability is entitled to be fully indemnified by that non-UK resident for the amount paid.
• The agent may retain sufficient funds from money owed to the non-UK resident, or received on the non-UK resident's behalf, to cover any tax liabilities already paid or still outstanding.
• The sums the agent can withhold include both amounts the agent would otherwise owe to the non-UK resident and amounts received by the agent on the non-UK resident's behalf.
• These protections apply specifically to liabilities arising from the agent's role as a UK representative under the capital gains tax rules for non-UK residents.