Section 818 The independent investment manager conditions

United Kingdom

(1)

The independent investment manager conditions are met in relation to an investment transaction carried out on behalf of a non-UK resident by an investment manager in the United Kingdom F1if conditions A to E are met.

(2)

Condition A is that at the time of the transaction the investment manager is carrying on a business of providing investment management services.

(3)

Condition B is that the transaction is carried out in the ordinary course of that business.

(4)

Condition C is that, when the investment manager acts on behalf of the non-UK resident in relation to the transaction, the relationship between them, having regard to its legal, financial and commercial characteristics, is a relationship between persons carrying on independent businesses dealing with each other at arm's length.

F2(5)

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(6)

Condition E is that the remuneration which the investment manager receives in respect of the transaction for the provision of investment management services to the non-UK resident is not less than is customary for that class of business.

F3(7)

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F4(8)

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Annotations

Textual amendments

F1: Words in s. 818(1) substituted (21.7.2008 with effect in accordance with Sch. 16 para. 11(3) of the amending Act) by Finance Act 2008 (c. 9), Sch. 16 para. 10(2)
F2: S. 818(5) omitted (for chargeable periods beginning on or after 1.1.2026) by virtue of Finance Act 2026 (c. 11), Sch. 7 paras. 23(1), 30
F3: S. 818(7) omitted (21.7.2008 with effect in accordance with Sch. 16 para. 11(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 16 para. 10(3)
F4: S. 818(8) omitted (21.7.2008 with effect in accordance with Sch. 16 para. 11(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 16 para. 10(3)

Notes on Chapter 1

Modifications

C1: Pt. 14 Ch. 1 excluded by 2005 c. 5, s. 608X(3)(a) (as inserted (with effect in accordance with Sch. 3 para. 7 of the amending Act) by Finance Act 2019 (c. 1), Sch. 3 para. 4)