Part 2 U.K.Double taxation relief

Modifications etc. (not altering text)

C1 Pt. 2 modified by 1988 c. 1, Sch. 19ABA paras. 26-28 (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 34(3) (with Sch. 9 paras. 1-9, 22))

C2 Pt. 2 applied by 2010 c. 4, s. 269DL(6) (as inserted (with effect in accordance with Sch. 3 Pt. 3 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 1)

CHAPTER 2 U.K.Double taxation relief by way of credit

Unrelieved foreign tax on profits of overseas permanent establishment U.K.

78 Meaning of “overseas permanent establishment” U.K.

(1) For the purposes of sections [F1 71A] to 76 “overseas permanent establishment” means [F2 , in relation to a company,] a permanent establishment through which the company carries on a trade in a territory outside the United Kingdom.

(2) In subsection (1) “permanent establishment”—

(a) if the arrangements are double taxation arrangements [F3 which contain a relevant non-discrimination provision], has the meaning given by the arrangements, and

(b) if the arrangements are double taxation arrangements [F4 which do not contain a relevant non-discrimination provision], or if the arrangements are unilateral relief arrangements for a territory outside the United Kingdom, [F5 has the meaning given by the Model Tax Convention on Income and on Capital published by the Organisation for Economic Co-operation and Development in July 2010 (“the OECD”) or such other document published by the OECD in place of it as is designated from time to time by order made by the Treasury.]

[F6 (3) In subsection (2) “relevant non-discrimination provision” means a provision to the effect that the taxation on a permanent establishment of an enterprise of a state which is party to the arrangements (a “contracting state”) is not to be less favourably levied in any other contracting state than the taxation levied on enterprises of that other contracting state carrying on the same activities.]

Textual Amendments

F1 Word in s. 78(1) substituted (15.3.2018) by Finance Act 2018 (c. 3), s. 30(3)(a)

F2 Words in s. 78(1) inserted (15.3.2018) by Finance Act 2018 (c. 3), s. 30(3)(b)

F3 Words in s. 78(2)(a) substituted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 28(2)(a), 31

F4 Words in s. 78(2)(b) substituted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 28(2)(b)(i), 31

F5 Words in s. 78(2)(b) substituted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 28(2)(b)(ii), 31

F6 S. 78(3) inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 28(3), 31