Corporation Tax Act 2010 section 356OG

The chargeable company

Section 356OG defines which company is the "chargeable company" for the purposes of taxing profits or gains from transactions in UK land, and sets out special rules that can shift the tax charge from the company that realises the profit to another company that provided the value or the opportunity.

• The general rule is that the chargeable company is the company (C) that actually realises the profit or gain from a disposal of UK land or property deriving its value from UK land.
• Where all or part of C's profit or gain is derived from value provided directly or indirectly by another company (B), then B becomes the chargeable company instead — regardless of whether the value was put at C's disposal.
• Where all or part of C's profit or gain is derived from an opportunity to realise a profit or gain provided directly or indirectly by another company (D), then D becomes the chargeable company — unless the case already falls within the value-provision rule relating to company B.
• These special rules redirecting the charge to B or D do not apply where the profit or gain is already caught by the fragmented activities rule in section 356OH(3).