Section 1B — Taxation of Chargeable Gains Act 1992: Non-UK residents: UK branch or agency

Non-UK residents: UK branch or agency 1B 1 For the purposes of section 1A(3)(a) a person has a UK branch or agency at any time if, at that time, the person carries on a trade, profession or vocation in the United Kingdom through a branch or agency there.

2 For the purposes of section 1A(3)(a) an asset has a relevant connection to a person's UK branch or agency if—

a it is, or was, used in or for the purposes of the trade, profession or vocation at or before the time of the disposal, b it is, or was, used or held for the purposes of the branch or agency at or before that time, or c it is acquired for use by or for the purposes of the branch or agency.

3 Section 1A(3)(a) does not apply to a person who, as a result of Part 2 of TIOPA 2010 (double taxation arrangements), is exempt from income tax for the tax year in respect of the profits or gains of the branch or agency.

4 In the case of a profession or vocation carried on by a person, an asset does not have a relevant connection to the person's UK branch or agency if—

a the asset was only used in or for the purposes of the profession or vocation before 14 March 1989, or b the asset was only used or held for the purposes of the branch or agency before that date.

5 In this Act, unless the context otherwise requires, “branch or agency”—

a means any factorship, agency, receivership, branch or management, but b does not include any person within any of the exemptions under sections 835G to 835K of ITA 2007 (persons who are not UK representatives).