Conditions to be met

The term ‘broker’ applies to those agents who, by the custom of certain markets are entitled, and recognised as being entitled, to act for both purchaser and seller in that market (Bankes, LJ in Wilcock v Pinto 9TC111).

There are four conditions that must all be met before the specific exemption for brokers can apply (ITA07/S835L and CTA10/S1145). These are as follows:

The broker must be carrying on the normal business of a broker

The transaction must be carried out by the broker in the ordinary course of the broker's business.

The broker's fee must not be less than customary for that class of business.

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