SCHEDULES

SCHEDULE 27Permanent establishment etc: consequential amendments

Taxes Act 1988

1

1

The Taxes Act 1988 is amended as follows.

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3

In section 806L (carry forward or carry back of unrelieved foreign tax), for subsection (7) substitute—

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In this section—

“overseas permanent establishment” means a permanent establishment through which a company carries on a trade in a territory outside the United Kingdom; and

“permanent establishment”—

a

if there are arrangements having effect under section 788 in relation to the territory concerned that define the expression, has the meaning given by those arrangements, and

b

if there are no such arrangements, or if they do not define the expression, has the meaning given by section 148 of the Finance Act 2003.

4

In Schedule 15 (qualifying policies), in paragraph 24 (policies issued by non-resident companies), in sub-paragraph (3)(b) (twice) and (c) for “branch” substitute “ permanent establishment ”.