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HMRC internal manual

International Manual

HM Revenue & Customs
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Non-residents trading in the UK: domestic law permanent establishment/branch or agency

Permanent establishment - fixed place of business

A fixed place of business permanent establishment will have certain characteristics,all of which would be expected to be present, as follows:

  1. there must be a geographic place of business, possibly premises or a site, although it can, in certain circumstances, be machinery or equipment (see INTM266060);
  2. the place of business must be fixed, that is, have a certain degree of permanence (see INTM266070), and
  3. the business must be carried on through this fixed place of business, normally by the personnel of the enterprise (see INTM266080).

If any part of the non-resident’s business is carried out through a UK fixed placeof business then a permanent establishment exists. Only the profits arising through thebusiness carried out through the UK permanent establishment may be taxed in the UK.