Corporation Tax Act 2009 section 289

Effect of company starting or ceasing to be within charge to corporation tax

Section 289 deals with what happens when a company moves into or out of the corporation tax regime in relation to an overseas property business.

• The section applies when a company either starts or ceases to be within the charge to corporation tax on an overseas property business
• A company entering the corporation tax regime is treated as starting to carry on the overseas property business at that point
• A company leaving the corporation tax regime is treated as ceasing to carry on the overseas property business at that point
• The rule is relevant to non-UK resident companies whose tax status changes due to gaining or losing a UK permanent establishment