CG42040 - Residence and migration: non-resident companies with no UK permanent establishment
A company that satisfies all of the following:
- is not resident in the UK
- does not carry on a trade in the UK through a permanent establishment
- does not change its residence status during a year of assessment
- does not make a disposal of UK land
is not generally chargeable to either Capital Gains Tax or Corporation Tax on chargeable gains for any gains arising in accounting periods falling in that year of assessment.
This is because if a company is not resident in the UK, CTA09/S5 (2) removes the company from the charge to Corporation Tax unless it is carrying on certain activities principally when trading in the UK through a permanent establishment or making a disposal of UK land. For capital gains purposes a non-resident company is chargeable to Corporation Tax in line with the provisions of s2B TCGA92/2B and those relevant occasions are outlined below.
Non-resident companies with a UK permanent establishment
A non-resident company that carries on a trade in the UK through a permanent establishment is within the charge to Corporation Tax in respect of disposals of assets situated in the UK and associated with the trade or with the permanent establishment, see CG42100+ for further guidance.
Gains arising from other assets are not usually within the charge to Corporation Tax.
Companies migrating or becoming treaty non-resident
Where a company changes its residence status see CG42300+.
Non-resident Capital Gains (NRCG)
From 6 April 2019 there is a charge to Corporation Tax for a disposal of UK land by a non-resident company. Broadly UK land means the disposal of any interest in UK land (see CG73922) including indirect disposals. An indirect disposal is of shares or other interests held in a UK property rich company, see CG73934.
Unlike the previous regimes discussed above, these rules apply normal CG principles, computational rules and reliefs as for UK resident companies. More detail on the regime is covered from CG73920+.
Prior to 6 April 2019 non-resident companies were broadly only chargeable to disposals of UK residential property from April 2013. This was under the ATED related gains regime, see CG73600+ and/or NRCGT from April 2015, see CG73700+.