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Corporation Tax Act 2009
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Changes over time for: Section 5
Changes to legislation:
Corporation Tax Act 2009, Section 5 is up to date with all changes known to be in force on or before 25 November 2024. 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.
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Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
- Blanket amendment words substituted by S.I. 2011/1043 art. 3 4
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- s. 322(2A)(zb) inserted by 2016 c. 24 s. 73(5)
- s. 1058B(5)(ea) inserted by 2023 c. 20 Sch. para. 57
- s. 1094(2A)-(2C) inserted by 2012 c. 14 Sch. 3 para. 13(3)
- s. 1106(4A)-(4C) inserted by 2012 c. 14 Sch. 3 para. 14(3)
5Territorial scope of chargeU.K.
This section has no associated Explanatory Notes
(1)A UK resident company is [F1chargeable to corporation tax on income] on all its profits wherever arising [F2(but see Chapter 3A for an exemption from charge in respect of profits of foreign permanent establishments)].
[F3(2)A non-UK resident company is [F4within the charge to corporation tax on income] only if—
(a)it carries on a trade of dealing in or developing UK land (see section 5B), F5...
(b)it carries on a trade in the United Kingdom (other than a trade of dealing in or developing UK land) through a permanent establishment in the United Kingdom[F6,
(c)it carries on a UK property business, or
(d)it has other UK property income.]]
[F7(2A)A non-UK resident company which carries on a trade of dealing in or developing UK land is [F8chargeable to corporation tax on income] on all its profits wherever arising that are profits of that trade.]
(3)A non-UK resident company which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom is [F9chargeable to corporation tax on income] on all its profits wherever arising that are chargeable profits as defined in section 19 (profits attributable to its permanent establishment in the United Kingdom).
[F10(3A)A non-UK resident company which carries on a UK property business is chargeable to corporation tax on income on all its profits that are—
(a)profits of that business, or
(b)profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of that business.
(3B)A non-UK resident company which has other UK property income is chargeable to corporation tax on income on all its profits that—
(a)consist of that income, or
(b)are profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of enabling it to generate that income.]
(4)Subsections (1) [F11and (2A) to (3B)] are subject to any exceptions provided for by the Corporation Tax Acts.
[F12(5)The territorial scope of the charge to corporation tax on chargeable gains is given by section 2B of TCGA 1992.]
[F13(6)In this Part “other UK property income” means income dealt with by any of the following Chapters of Part 4—
(a)Chapter 7 (rent receivable in connection with a UK section 39(4) concern);
(b)Chapter 8 (rent receivable for UK electric-line wayleaves);
(c)Chapter 9 (post-cessation receipts arising from a UK property business).]
Textual Amendments
F1Words in s. 5(1) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 110(2)
F2Words in s. 5(1) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 para. 3, 31
F3S. 5(2) substituted (with effect in accordance with s. 81 of the amending Act) by Finance Act 2016 (c. 24), s. 76(2) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))
F4Words in s. 5(2) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 110(3)
F5Word in s. 5(2)(a) omitted (6.4.2020) by virtue of Finance Act 2019 (c. 1), Sch. 5 paras. 2(a), 35 (with Sch. 5 para. 36)
F6S. 5(2)(c)(d) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 2(b), 35 (with Sch. 5 para. 36)
F7S. 5(2A) inserted (with effect in accordance with s. 81 of the amending Act) by Finance Act 2016 (c. 24), s. 76(3) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))
F8Words in s. 5(2A) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 110(2)
F9Words in s. 5(3) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 110(2)
F10S. 5(3A)(3B) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 para. 3, 35 (with Sch. 5 para. 36)
F11Words in s. 5(4) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 4, 35 (with Sch. 5 para. 36)
F12S. 5(5) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 110(4)
F13S. 5(6) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 5, 35 (with Sch. 5 para. 36)
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