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:
- Ìý
(a)ÌýÌýÌýÌý used in or held for the purposes of the UK trade at or before the time the gain accrued, or
- Ìý
(b)ÌýÌýÌýÌý acquired for use by or for the purposes of the PE
Item (a) would cover, for example, the disposal of a factory in which the PE carried out steel making; item (b) would include the disposal of investments used to fund the activities of the PE.
The charge does not apply to a company which is exempt from corporation
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Web page updated on 17 Mar 2025 17:06