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Section 2C: Non-UK resident company with UK permanent establishment

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part 1: Capital gains tax and corporation tax on chargeable gains — Chapter 2: Corporation tax on chargeable gains

For the purposes of section 2B(3) a company has a UK permanent establishment at any time if, at that time, the company carries on a trade in the United Kingdom through a permanent establishment there.

For the purposes of section 2B(3) an asset has a relevant connection to a company's UK permanent establishment if—

it is, or was, used in or for the purposes of the trade at or before the time of the disposal,
it is, or was, used or held for the purposes of the permanent establishment at or before that time, or
it is acquired for use by or for the purposes of the permanent establishment.

Section 2B(3) does not apply to a company which, as a result of Part 2 of TIOPA 2010 (double taxation arrangements), is exempt from corporation tax for the accounting period in respect of the profits of the permanent establishment.

In the case of the long-term business of an overseas life insurance company, subsection (2) has effect as if for paragraph (b) there were substituted—

In this section references to a trade include an office and references to carrying on a trade include holding an office.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.