BKLM642000 - Anti-avoidance: application of the anti-avoidance rule to a designated FPE election
Paragraph 47 of Schedule 19
Where a UK resident in a banking group or a standalone entity has a Foreign Permanent Establishment (FPE) it may elect to disregard the non-UK allocated equity and liabilities attributable to the FPE under provisions at Paragraphs 15D and 15E of Schedule 19 (see BKLM315200).
HMRC’s view is that an election to designate an FPE entity under these provisions would not ordinarily fall within the scope of the anti-avoidance rules simply because it might reduce the overall Bank Levy charge.