Part 5Enterprise investment scheme
Chapter 4The issuing company
Definitions
191AF1Meaning of “permanent establishment”
1
This section applies for the purposes of this Part.
2
A company has a “permanent establishment” in the United Kingdom if (and only if)—
a
it has a fixed place of business there through which the business of the company is wholly or partly carried on, or
b
an agent acting on behalf of the company has and habitually exercises there authority to enter into contracts on behalf of the company.
3
For the purposes of this section “fixed place of business” includes (without prejudice to the generality of that expression)—
a
a place of management,
b
a branch,
c
an office,
d
a factory,
e
a workshop,
f
a mine, an oil or gas well, a quarry or any other place of extraction of natural resources, and
g
a building site or construction or installation project.
4
If the condition in subsection (5) is met, a company is not regarded as having a permanent establishment in the United Kingdom by reason of the fact that—
a
a fixed place of business is maintained there for the purpose of carrying on activities for the company, or
b
an agent carries on activities there for and on behalf of the company.
5
The condition is that, in relation to the business of the company as a whole, the activities carried on are only of a preparatory or auxiliary character.
6
For this purpose “activities of a preparatory or auxiliary character” include (without prejudice to the generality of that expression)—
a
the use of facilities for the purpose of storage, display or delivery of goods or merchandise belonging to the company,
b
the maintenance of a stock of goods or merchandise belonging to the company for the purpose of storage, display or delivery,
c
the maintenance of a stock of goods or merchandise belonging to the company for the purpose of processing by another person, and
d
purchasing goods or merchandise, or collecting information, for the company.
7
A company is not regarded as having a permanent establishment in the United Kingdom by reason of the fact that it carries on business there through an agent of independent status (including a broker or a general commission agent) acting in the ordinary course of the agent's business.
8
A company is not regarded as having a permanent establishment in the United Kingdom by reason of the fact that it controls a company that—
a
is resident there, or
b
carries on business there (whether through a permanent establishment or otherwise).
9
The Treasury may by regulations amend this section.