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HMRC internal manual

Company Taxation Manual

Residence: non-resident companies: liability to CT

Under CTA09/S5 (1) a company not resident in the UK is only chargeable to CT if it carries on a trade in the UK through a permanent establishment/branch or agency (see INTM264090 for the distinction). If it does, its chargeable profits are those within CTA09/S19:

  1. any trading income arising directly or indirectly through or from the permanent establishment/branch or agency,
  2. any income from property or rights used by, or held by or for, the permanent establishment/branch or agency except dividends or other distributions received from companies resident in the UK, and
  3. chargeable gains falling within TCGA92/S10B



  1. as a result of assets being used in or for the purposes of a trade carried on through the establishment
  2. as a result of assets being used or held for the purposes of the establishment or being acquired for use by or for the purposes of the establishment.

The main rule is that non-UK resident companies are not charged to capital gains tax, as distinct from corporation tax on capital gains where paragraph c. above applies. But there are exceptions - see CG42030. The main example is where there is an ATED related gain. ATED refers to the annual tax on enveloped dwellings - seeCG73600 onwards.

The main guidance on company residence is at INTM120000 onwards.

The main guidance on non-residents trading in the UK is at INTM260000 onwards.

For the application of Double Taxation Agreements, see DT1700 onwards.