Section 814 — Income Tax Act 2007: Meaning of “disregarded transaction income”

Meaning of “disregarded transaction income” 814 1 Subsection (2) applies if a non-UK resident carries on (alone or in partnership) a business through a broker in the United Kingdom.

2 Income is “disregarded transaction income”, subject to subsection (6), if—

a it is transaction income, and b the independent broker conditions are met in relation to the transaction in question.

3 Subsection (4) applies if a non-UK resident carries on (alone or in partnership) a business through an investment manager in the United Kingdom.

4 Income is “disregarded transaction income”, subject to subsection (6), if—

a it is transaction income, and b the independent investment manager conditions are met in relation to the transaction in question.

5 In this Chapter “ transaction income ”, in relation to a transaction carried out through a broker or investment manager in the United Kingdom on behalf of a non-UK resident, means income which arises to the non-UK resident from—

a so much of the non-UK resident's business carried on (alone or in partnership) through the broker or investment manager as relates to the transaction, or b property or rights which, as a result of the transaction, are used by, or held by or for, the broker or investment manager on behalf of the non-UK resident. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 This section needs to be read with— section 817 (the independent broker conditions), sections 818 to 824 (the independent investment manager conditions), section 827 (meaning of “ investment manager ” and “ investment transaction ”), and section 828 (transactions through brokers and investment managers).