Taxation of Chargeable Gains Act 1992 section 271J

Meaning of "non-UK resident" and "independent agent"

Section 271J defines two key terms used throughout this chapter: "non-UK resident" and "independent agent", and sets out the test for determining whether an agent is acting independently.

• A "non-UK resident" is simply any person who is not resident in the United Kingdom.
• An "independent agent" for a non-UK resident is a person who acts as that non-resident's UK representative in an agency capacity, but does so independently rather than under the non-resident's control.
• To qualify as acting independently, the relationship between the agent and the non-UK resident must, when assessed by its legal, financial and commercial characteristics, be one between separate independent businesses dealing at arm's length.
• If the relationship does not meet this arm's length test, the agent is not considered independent, which may have implications for the non-UK resident's exposure to UK capital gains tax.