Produced by Tolley
  • 25 Oct 2021 13:46

The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • UK premises
  • Permanent establishment
  • Permanent
  • Right to use
  • Place where the business is carried on
  • UK property taxes
  • Short-term leasing
  • Corporate tax deduction
  • VAT
  • Other leases
  • More...

UK premises

Permanent establishment

The availability of premises 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 of a UK permanent establishment. In order for there to be a permanent establishment, a ‘fixed place of business’ is required. This can be specific premises acquired by the overseas company in the UK, but it can also be the home office of a single employee, which is a right to use a place of business in the UK, and activities are undertaken at the place of business by the company, either through employees or third party representatives. UK statute specifically includes the following in the definition of ‘a fixed place of business’:

  1. a place of management

  2. a branch

  3. an office

  4. a factory

  5. a workshop

  6. an installation or structure for the exploration of natural resources

  7. a mine, an oil or gas well, a quarry or any other place of extraction of natural resources

  8. 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 of business in the UK.


To be a permanent establishment, the place of business must be permanent. As a rule of thumb, a place of business 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 of a stand at a trade fair, occupied regularly for three weeks a year, through which the company obtained a significant part of its annual sales.

Right to use

A fixed place of business can be specific premises acquired by the overseas company here, but it can also be the home office of a single employee; the premises

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