Corporation Tax Act 2009 (c. 4)

Part 2 U.K. Charge to corporation tax: basic provisions

Chapter 4 U.K. Non-UK resident companies: chargeable profits

The separate enterprise principle U.K.

23 Provision of goods or services for permanent establishment U.K.

(1) This section applies if the non-UK resident company provides the permanent establishment with goods or services.

(2) If the goods or services are of a kind that the company supplies, in the ordinary course of its business, to third parties dealing with it at arm's length, the matter is dealt with as a transaction to which the separate enterprise principle applies.

(3) If not, the matter is dealt with as an expense incurred by the non-UK resident company for the purposes of the permanent establishment (see section 29).