Taxation of Chargeable Gains Act 1992 section 10B

Non-resident company with United Kingdom permanent establishment

Section 10B sets out the rules for charging capital gains tax on non-resident companies that carry on a trade in the UK through a permanent establishment.

• A non-resident company trading through a UK permanent establishment is chargeable to corporation tax on gains from the disposal of assets used for that establishment's trade, or assets used or held for the establishment's purposes.
• The charge applies to assets that are situated in the UK and are either used in or for the purposes of the trade carried on through the permanent establishment, or used or held for the purposes of the permanent establishment.
• Where a non-resident company has both a UK permanent establishment and other UK activities, gains on assets used for purposes outside the permanent establishment are not caught by this section but may still be chargeable under other provisions.
• This provision was introduced by Finance Act 2019 and works alongside the wider rules on non-resident capital gains, ensuring that companies operating in the UK through a permanent establishment pay tax on gains arising from the disposal of relevant UK assets.

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