Income Tax Act 2007 section 257DD

The UK permanent establishment requirement

Section 257DD requires the company issuing shares under the SEIS scheme to have a permanent establishment in the United Kingdom throughout period B.

• The issuing company must maintain a permanent establishment in the UK throughout period B.
• A permanent establishment means the company has a fixed and ongoing physical presence in the United Kingdom.
• This requirement must be met continuously — not just at a single point in time — for the entirety of period B.
• Failure to satisfy this condition throughout period B means the company does not qualify under this provision.