Part 2Charge to corporation tax: basic provisions
Chapter 4Non-UK resident companies: chargeable profits
Chargeable profits
19Chargeable profits
1
This section applies F6for the purposes of the charge to corporation tax on income if a non-UK resident company carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.
2
The F7company's “chargeable profits” are its profits that are—
a
of a type mentioned in subsection (3), and
b
attributable to the permanent establishment in accordance with sections 20 to 32.
F12A
But the company's “chargeable profits” do not include—
a
profits of a trade of dealing in or developing UK land (see section 5B),
b
profits of a UK property business,
c
profits consisting of other UK property income, or
d
profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of its UK property business or for the purposes of enabling it to generate other UK property income.
3
The types of profits referred to in subsection (2)(a) are—
a
trading income arising directly or indirectly through or from the establishment, F4and
b
income from property or rights used by, or held by or for, the establishment.
F2c
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F54
For the purposes of the charge to corporation tax on chargeable gains accruing to the company, see section 2B(3) of TCGA 1992.
5
That subsection provides (among other things) that the gains are chargeable to corporation tax only so far as they are attributable to the permanent establishment in accordance with sections 20 to 32 of this Act.
20Profits attributable to permanent establishment: introduction
1
Sections 21 to 32 apply for the purpose of determining the amount of profits of a non-UK resident company that are attributable to a permanent establishment of the company in the United Kingdom.
2
Sections 21 to 28 contain provision about the separate enterprise principle.
3
See also F3section 1152 of CTA 2010 (investment managers: disregard of certain chargeable profits) , which provides for profits of certain investment transactions to be disregarded in determining the amount of profits attributable to a permanent establishment.