Income Tax Act 2007 section 180A

The UK permanent establishment requirement

Section 180A requires the company issuing the shares to have a permanent establishment in the United Kingdom throughout a specified period known as period B.

• The issuing company must have a permanent establishment in the UK — meaning a fixed place of business or operations through which it carries on its activities.
• This requirement must be met continuously throughout period B — there must be no gap in the company's UK permanent establishment during that time.
• This is a condition that must be satisfied for the relevant tax relief to apply; failure to maintain a UK permanent establishment during period B could result in the relief being denied.
• The requirement was introduced by the Finance (No. 3) Act 2010 and applies from the date appointed by statutory instrument (SI 2011/662).