Corporation Tax Act 2009 (c. 4)

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

Chapter 1 U.K. The charge to corporation tax

General scheme of corporation tax U.K.

5 Territorial scope of charge U.K.

(1) A UK resident company is chargeable to corporation tax on all its profits wherever arising [F1 (but see Chapter 3A for an exemption from charge in respect of profits of foreign permanent establishments)].

(2) A non-UK resident company is within the charge to corporation tax only if it carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.

(3) A non-UK resident company which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom is chargeable to corporation tax 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).

(4) Subsections (1) and (3) are subject to any exceptions provided for by the Corporation Tax Acts.

Textual Amendments

F1 Words in s. 5(1) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 para. 3, 31