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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Non-residents: UK branch/agency or permanent establishment

A person who is neither resident nor ordinarily resident* in the UK is normally outside the charge to Capital Gains Tax or, for companies, the charge to Corporation Tax on capital gains. But if

  • a person other than a company carries on a trade, profession or vocation in the UK through a branch or agency, or
  • a company carries on a trade in the UK through a permanent establishment

they will be within the appropriate charge as regards certain gains and deemed gains relating to that activity. For further guidance see CG42100+ for companies and CG25500+ for other persons.

However this does not apply to any person who is exempt from Income Tax on the profits of the branch or agency because of a double taxation agreement. Such persons are also exempt from Capital Gains Tax, TCGA92/S10 (4).

Nor does it apply to any company exempt from Corporation Tax on the profits of the permanent establishment because of a double taxation agreement. Such companies are also exempt from Corporation Tax on chargeable gains, TCGA/S10B (3).

Guidance on the taxation of non-residents trading in the UK can be found at INTM260000 onwards.

  • For 2013/14 and subsequent years ordinary residence does not need to be considered.