The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The availability ofpremises in the UK is an indicator (although not necessarily decisive) in determining whether or not the overseas company has a taxable presence in the UK in the form ofa UK permanent establishment. In order for there to be a permanent establishment, a ‘fixed place ofbusiness’ is required. This can be specific premises acquired by the overseas company in the UK, but it can also be the home office ofa single employee, which is a right to use a place ofbusiness in the UK, and activities are undertaken at the place ofbusiness by the company, either through employees or third party representatives. UK statute specifically includes the following in the definition of‘a fixed place ofbusiness’:
a place ofmanagement
an installation or structure for the exploration ofnatural resources
a mine, an oil or gas well, a quarry or any other place ofextraction ofnatural resources
a building site or construction or installation project
CTA 2010, s 1141(2)
This list is not definitive; a permanent establishment will exist when there is any fixed place ofbusiness in the UK.
To be a permanent establishment, the place ofbusiness must be permanent. As a rule ofthumb, a place ofbusiness will be a permanent establishment if it is used by the company for at least six months.
‘Permanence’ can also arise through an event or location through which the company undertakes business on a regular basis. In a Canadian case, a company was held to have a permanent establishment in respect ofa stand at a trade fair, occupied regularly for three weeks a year, through which the company obtained a significant part ofits annual sales.
A fixed place ofbusiness can be specific premises acquired by the overseas company here, but it can also be the home office ofa single employee; the premises
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