C1.602 Non-resident carrying on a trade through a UK branch or agency/permanent establishment
Although non-resident persons (see C1.601) are not generally subject to capital gains tax (but see E6.137C regarding temporary non-residence), there is an exception where a trade is carried on in the UK through a branch or agency or, in the case of companies, a permanent establishment (see D4.116)1.
Non-resident individuals who carry on a trade in the UK through a branch or agency or a permanent establishment in the UK are chargeable on gains accruing on the disposal of assets situated2 in the UK which3:
(a) are or were used in or for the purposes of the trade at or before the time of disposal
(b) are or were used or held for the purposes of the branch or agency, or permanent establishment, at or before that time, or
(c) are acquired for use by or for the purposes of the branch or agency, or permanent establishment
In the case of the long-term business of an overseas insurance company for (b) above the asset need not be UK situated at the time of disposal4.
Equally, losses arising on such assets are allowable losses5.
For the treatment of gains arising to offshore developers of UK land see B5.255.
In Puddu v Doleman6, the taxpayer, who had run a residential home for the elderly in the UK for several years, left the country and appointed a supervisor/manageress to run it on his behalf. The following year, he sold the business realising a gain on