Commentary

D4.120 Determination of profits—chargeable gains of UK PEs

Corporate tax
Corporate tax | Commentary

D4.120 Determination of profits—chargeable gains of UK PEs

Corporate tax | Commentary

D4.120 Determination of profits—chargeable gains of UK PEs

The rules described in this article will not apply if different rules are included in the relevant double taxation agreement; in such a case the rules in the agreement take precedence.

Gains chargeable to corporation tax

A non-resident company trading in the UK through a permanent establishment (PE) is chargeable to corporation tax (rather than capital gains tax) in respect of chargeable gains on the disposal of assets situated in the UK1:

  1.  

    (a)     used in or held for the purposes of the UK trade at or before the time the gain accrued, or

  2.  

    (b)     acquired for use by or for the purposes of the PE

Item (a) would cover, for example, the

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