Part I Capital gains tax and corporation tax on chargeable gains

Residence etc.

F110BNon-resident company with United Kingdom permanent establishment

(1)

Subject to any exceptions provided by this Act, the chargeable profits for the purposes of corporation tax of a company not resident in the United Kingdom but carrying on a trade in the United Kingdom through a permanent establishment there include chargeable gains accruing to the company on the disposal of—

(a)

assets situated in the United Kingdom and used in or for the purposes of the trade at or before the time the gain accrued, or

(b)

assets situated in the United Kingdom and used or held for the purposes of the permanent establishment at or before the time the gain accrued or acquired for use by or for the purposes of the permanent establishment.

(2)

Subsection (1) does not apply unless the disposal is made at a time when the company is carrying on a trade in the United Kingdom through a permanent establishment there.

(3)

This section does not apply to a company that, by virtue of F2Part 2 of TIOPA 2010 (double taxation relief), is exempt from corporation tax for the chargeable period in respect of the profits of the permanent establishment.

F3(3A)

This section applies to an overseas life insurance company in the case of its long-term business with the omission from subsection (1)(b) of the words “situated in the United Kingdom and”.

F4(4)

In this section—

(a)

references to a trade include an office, and

(b)

references to carrying on a trade include holding an office.