(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 if—
(a)conditions A to F are met, if this section applies for the purposes of section 813, or
(b)conditions A to E and G are met, if this section applies for the purposes of section 816.
(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.
(5)Condition D is that the requirements of the 20% rule are met (see section 819).
(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.
(7)Condition F is that the investment manager does not fall for the purposes of section 126 of, and Schedule 23 to, FA 1995 to be treated as a UK representative of the non-UK resident in relation to any other income which is chargeable to income tax, or amounts which are chargeable to capital gains tax, for the same tax year as the transaction income.
(8)Condition G is that the investment manager does not fall to be treated as a permanent establishment of the non-UK resident company in relation to any other transaction of any kind carried out in the same accounting period of the non-UK resident company as the transaction in question.