Section 1142 Agent of independent status

(1)

A company is not regarded as having a permanent establishment in a territory by reason of the fact that it carries on business there through an agent of independent status acting in the ordinary course of the agent's business.

F1(1A)

A person is not to be regarded for the purposes of subsection (1) as an agent of independent status in relation to a company where the person—

(a)

is closely related to the company, and

(b)

acts exclusively or almost exclusively on behalf of—

(i)

the company, or

(ii)

the company and other companies to which the person is closely related.

(1B)

In subsection (1A), “closely related” has the meaning that it has in section 1143 (see subsection (2CA) of that section).

(2)

Sections 1145 to F21150 F3modify the application of this section in relation to transactions carried out on behalf of a non-UK resident company by a person in the United Kingdom acting as—

(a)

a broker (section 1145), F4or

(b)

an investment manager (sections 1146 to 1150), F5...

(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: S. 1142(1A)(1B) inserted (for chargeable periods beginning on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 7 paras. 13(2), 30
F2: Word in s. 1142(2) substituted (for chargeable periods beginning on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 7 paras. 19(a), 30
F3: Words in s. 1142(2) substituted (for chargeable periods beginning on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 7 paras. 13(3)(a), 30
F4: Word in s. 1142(2)(a) inserted (for chargeable periods beginning on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 7 paras. 13(3)(b), 19(b), 30
F5: S. 1142(2)(c) and word omitted (for chargeable periods beginning on or after 1.1.2026) by virtue of Finance Act 2026 (c. 11), Sch. 7 paras. 13(3)(c), 19(c), 30

Notes on Chapter 2

Modifications

C1: Pt. 24 Ch. 2 applied by 2007 c. 3, s. 1007A (as inserted (with effect in accordance with Sch. 2 paras. 7(3), 8 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 3(3); S.I. 2011/662, art. 2)
C2: Pt. 24 Ch. 2 applied by 2003 c. 1, s. 60I(2)(a) (as inserted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 5, 24 (with Sch. 1 paras. 30-34))