Part 24Corporation Tax Acts definitions etc
Chapter 2Permanent establishments
Circumstances where there is no permanent establishment
1142Agent of independent status
1
A company is not regarded as having a permanent establishment in a territory by reason of the fact that it carries on business there through an agent of independent status acting in the ordinary course of the agent's business.
2
Sections 1145 to 1151 apply for the purpose of supplementing subsection (1) in relation to transactions carried out on behalf of a non-UK resident company by a person in the United Kingdom acting as—
a
a broker (section 1145),
b
an investment manager (sections 1146 to 1150), or
c
a members' or managing agent at Lloyd's (section 1151).
1143Preparatory or auxiliary activities
1
If the condition in subsection (2) is met, a company is not regarded as having a permanent establishment in a territory by reason of the fact that—
a
a fixed place of business is maintained there for the purpose of carrying on activities for the company, or
b
an agent carries on activities there for and on behalf of the company.
2
The condition is that, in relation to the business of the company as a whole, the activities carried on are only of a preparatory or auxiliary character.
3
For this purpose “activities of a preparatory or auxiliary character” include (without prejudice to the generality of that expression)—
a
the use of facilities for the purpose of storage, display or delivery of goods or merchandise belonging to the company,
b
the maintenance of a stock of goods or merchandise belonging to the company for the purpose of storage, display or delivery,
c
the maintenance of a stock of goods or merchandise belonging to the company for the purpose of processing by another person, and
d
purchasing goods or merchandise, or collecting information, for the company.
1144Alternative finance arrangements
1
Subsection (2) applies if alternative finance return is paid to a non-UK resident company.
2
The company is not regarded as having a permanent establishment in the United Kingdom merely by virtue of anything done for the purposes of the alternative finance arrangements—
a
by the other party to the arrangements, or
b
by any other person acting for the company in relation to the arrangements.
3
In subsection (1) “alternative finance return” means alternative finance return within the application of—
a
section 564I, 564K or 564L(2) or (3) of ITA 2007, or
b
section 511, 512 or 513(2) or (3) of CTA 2009.
4
In subsection (2) the reference to “the alternative finance arrangements” is a reference to the alternative finance arrangements under which the alternative finance return mentioned in subsection (1) is paid.