Finance Act 2022

57 UK revenue: determination U.K.

(1) This section applies for the purposes of determining a person’s UK revenue in a relevant accounting period.

(2) In the case of a UK resident person, the person’s UK revenue is all of that person’s revenue after deducting so much of their revenue as, on a just and reasonable apportionment, is attributable to the activities of any permanent establishment of the person in a territory outside the United Kingdom.

(3) In the case of a non-UK resident person, the person’s UK revenue is so much of the person’s revenue as, on a just and reasonable apportionment, is attributable to activities of any permanent establishment of the person in the United Kingdom (subject to subsections (4) and (5)).

(4) Subsection (5) applies to a non-UK resident person who, by virtue of regulation 9(4) of the Money Laundering Regulations (casinos which provide facilities for remote gambling), is regarded for the purpose of those regulations as carrying on business in the United Kingdom.

(5) The person’s UK revenue also includes so much of the person’s revenue as—

(a) is attributable, on a just and reasonable apportionment, to activities in respect of which a charge to remote gaming duty arises (see section 155 of FA 2014), and

(b) is not included in the person’s UK revenue by virtue of subsection (3).

(6) References in this section to a “permanent establishment” of a person are to be read—

(a) in the case of a company, in accordance with Chapter 2 of Part 24 of CTA 2010;

(b) in any other case, in accordance with that Chapter but as if the person were a company.

(7) References in this Part to a person’s “revenue” in a relevant accounting period are (subject to subsection (9)) references to—

(a) the person’s turnover for that period, and

(b) any other amounts (not included within turnover) which, in accordance with generally accepted accounting practice (“GAAP”), are recognised as revenue in the person’s profit and loss account or income statement for the accounting period.

(8) Where a person does not draw up accounts for a relevant accounting period in accordance with GAAP, the reference in subsection (7)(b) to any amounts which in accordance with GAAP are recognised as revenue in the person’s profit and loss account or income statement for the accounting period is to be read as a reference to any amounts which would be so recognised if the person had drawn up such accounts for that accounting period.

(9) The following are to be ignored in determining a person’s revenue for the purposes of this Part—

(a) a distribution within the meaning of CTA 2010 that—

(i) is received from a company that is connected with that person in accordance with sections 1122 and 1123 of CTA 2010, and

(ii) is not made in respect of shares or other assets, profits on the sale of which would be a trading receipt of that person;

(b) such other descriptions of revenue as may be specified in regulations made by the Treasury.