Part 14Income tax liability: miscellaneous rules

Chapter 1Limits on liability to income tax of non-UK residents

Supplementary

827Meaning of “investment manager” and “investment transaction”

(1)

In this Chapter “investment manager” means a person who provides investment management services F1(which may include or comprise the provision of investment advice).

F2(2)

An “investment transaction” means any transaction other than a transaction with an excluded subject matter.

(3)

The following are excluded subject matters—

(a)

land in the United Kingdom, and

(b)

any commodity or other physical asset.

(4)

But a transaction is to be treated as not having an excluded subject matter if—

(a)

it is a derivative contract whose subject matter is a commodity but which does not result in the physical delivery of the commodity, or

(b)

it is a derivative contract whose subject matter is an excluded subject matter only because it operates by reference to a qualifying index, provided that index is not maintained by a person who is connected to any of the parties to the transaction.

(5)

For the purposes of subsection (4) a “qualifying index” means an index relating to an excluded subject matter that—

(a)

is publicly available, and

(b)

is an index of a substantial number of assets.