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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Non-resident company with a UK permanent establishment: gains on disposals

TCGA92/S10B

A disposal of an asset by a company which is not resident but is carrying on a trade in the UK through a permanent establishment will be an occasion of charge and the gain will be within the charge to Corporation Tax if

  • at the time of the disposal the trade continues to be carried on through the permanent establishment in the UK
  • the asset is situated in the UK
  • at or before the time of the disposal the asset has been used in or for the trade, or used in or held for the permanent establishment.

Disposals after trade has ceased

If the disposal occurs after the company has ceased to carry on the trade through the permanent establishment in the UK there will have been a deemed disposal at market value when the trade ceased (TCGA92/S25 (3), see CG42130. There is no further charge at the time of the later disposal.

Disposals after asset transferred abroad

If the disposal occurs after the asset has been transferred outside the UK there will have been a deemed disposal at market value when the asset was transferred abroad (TCGA92/S25 (1)), see CG42130. There is no further charge at the time of the later disposal.