Taxation (International and Other Provisions) Act 2010 section 371DG

Exclusion: trading profits (business premises condition)

Section 371DG defines the business premises condition that a controlled foreign company must satisfy as part of the exclusion for trading profits from the CFC charge gateway.

• The CFC must have premises in its territory of residence throughout the entire accounting period
• Those premises must be occupied and used with a reasonable degree of permanence
• The CFC's activities in that territory must be wholly or mainly carried on from those premises
• Premises include offices, shops, factories, mines, oil or gas wells, quarries, and building sites lasting at least 12 months