Version Superseded: 01/04/2010
Point in time view as at 01/04/2009.
Finance Act 2003, Cross Heading: Profits attributable to permanent establishment: disregard of profits of certain investment transactions is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Textual Amendments
F1Sch. 26 para. 5A and cross-heading inserted (with effect in accordance with Sch. 16 para. 11(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 16 para. 9(4)
5A(1)This paragraph applies if—U.K.
(a)an investment manager carries out one or more investment transactions (“relevant investment transactions”) on behalf of a non-resident company (whether or not the investment manager also carries out other transactions of any kind on behalf of the company), and
(b)as regards the non-resident company, the investment manager is not regarded as an agent of independent status acting in the ordinary course of his business (whether because conditions in paragraph 3 are not met in relation to relevant investment transactions or otherwise).
(2)In determining under [F2Chapter 4 of Part 2 of the Corporation Tax Act 2009] the amount of the profits attributable to the permanent establishment represented by the investment manager acting as an agent on behalf of the non-resident company, chargeable profits that derive from a relevant investment transaction are to be disregarded in either of the following cases.
(3)The first case is where the conditions in paragraph 3 are met in relation to the transaction.
(4)The second case is where the conditions in paragraph 3, except for the requirements of the 20% rule, are met in relation to the relevant investment transaction.
(5)But, in the second case, the chargeable profits are to be disregarded only to the extent that they do not represent relevant excluded income of the company to which the investment manager or a person connected with the investment manager has or has had any beneficial entitlement.
(6)Expressions used in this paragraph and in paragraph 3 or 4 have the same meaning in this paragraph as in paragraph 3 or 4.]
Textual Amendments
F2Words in Sch. 26 para. 5A(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 568 (with Sch. 2 Pts. 1, 2)
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