Chapter 2: Capital gains tax obligations and liabilities imposed on UK representatives
Overview
1255.This Chapter sets out the obligations and liabilities of a UK representative of a non‑UK resident carrying on a trade, profession or vocation through a branch or agency in the United Kingdom in relation to the assessment, collection and recovery of capital gains tax in respect of amounts which are chargeable to tax under section 10 of TCGA by reference to that branch or agency.
Section 271E: Introduction to Chapter
1256.This section introduces the Chapter. It is based on paragraph 1(1) and (2) of Schedule 23 to FA 1995.
Section 271F: Obligations and liabilities of UK representative
1257.This section treats the obligations and liabilities of the non‑UK resident in respect of amounts chargeable under section 10 of TCGA as also being the obligations and liabilities of the non‑UK resident’s UK representative in respect of the branch or agency to which those amounts relate. It is based on paragraphs 1(1) and 2 of Schedule 23 to FA 1995.
Section 271G: Exceptions: notices and information
1258.This section provides:
for the circumstances in which an obligation or liability of a non‑UK resident does not attach to the non‑UK resident’s UK representative (subsections (1) and (2));
that a UK representative which is an independent agent is only required to do what is practicable for the representative to do in discharging the representative’s obligations to provide information (subsections (3) to (5));
that, if the UK representative has only provided so much information as it is practicable for the representative to provide, the non‑UK resident is not discharged from the non‑UK resident’s obligations to provide the whole of the information (subsection (6)); and
for the circumstances in which a non‑UK resident is not bound by the mistakes of the UK representative (subsection (7)).
It is based on paragraphs 3 and 4 of Schedule 23 to FA 1995.
1259.In the definition of “information” in subsection (8), the words “to the Commissioners for Her Majesty’s Revenue and Customs or to any officer of Revenue and Customs” have been substituted for the words “to the Board or any officer of the Board” in the source legislation. This gives effect to section 50(1) and (2) of CRCA which require references to the terms in the source legislation to be taken as references to the substituted terms.
Section 271H: Exceptions: criminal offences and penalties etc
1260.This section sets out the circumstances in which the UK representative is not liable to be proceeded against for a criminal offence. It is based on paragraph 5 of Schedule 23 to FA 1995.
Section 271I: Indemnities
1261.This section sets out the circumstances in which an “independent agent” is entitled to be indemnified by the non‑UK resident and to retain sums otherwise payable or accountable by the UK representative to the non‑UK resident to meet the UK representative’s liabilities under the Chapter. It is based on paragraph 6 of Schedule 23 to FA 1995.
Section 271J: Meaning of “non‑UK resident” and “independent agent”
1262.This section defines “non‑UK resident” and “independent agent”. It is based on section 126(1) of, and paragraph 7 of Schedule 23 to, FA 1995.
