- Latest available (Revised)
- Original (As enacted)
Corporation Tax Act 2010, Section 1143 is up to date with all changes known to be in force on or before 21 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(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 [F1and are not part of a fragmented business operation].
[F2(2A)Activities are “part of a fragmented business operation” if—
(a)they are carried on (whether at the same place or at different places in the same territory) by the company or a person closely related to the company,
(b)they constitute complementary functions that are part of a cohesive business operation, and
(c)subsection (2B) applies.
(2B)This subsection applies if—
(a)the overall activity resulting from the combination of the functions mentioned in subsection (2A)(b) is not activity that is only of a preparatory or auxiliary character, or
(b)the company or a person closely related to the company has a permanent establishment in the territory by reason of carrying on any of those functions.
(2C)A person who is not a company is to be treated for the purposes of subsection (2B)(b) as having a permanent establishment in a territory if, were the person a company, the person would have a permanent establishment in the territory.
(2D)For the purposes of this section, one person (“A”) is closely related to another person (“B”) if—
(a)A is able to secure that B acts in accordance with A’s wishes (or vice versa),
(b)B can reasonably be expected to act, or typically acts, in accordance with A’s wishes (or vice versa),
(c)a third person is able to secure that A and B act in accordance with the third person’s wishes,
(d)A and B can reasonably be expected to act, or typically act, in accordance with a third person’s wishes, or
(e)the 50% investment condition is met in relation to A and B.
(2E)The 50% investment condition is met in relation to A and B if—
(a)A has a 50% investment in B (or vice versa), or
(b)a third person has a 50% investment in each of A and B,
and section 259ND of TIOPA 2010 (meaning of “50% investment”) applies for the purposes of determining whether a person has a “50% investment".]
(3)[F3In this section] “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.
Textual Amendments
F1Words in s. 1143(2) inserted (with effect in accordance with s. 21(5)(6) of the amending Act) by Finance Act 2019 (c. 1), s. 21(2)
F2S. 1143(2A)-(2E) inserted (with effect in accordance with s. 21(5)(6) of the amending Act) by Finance Act 2019 (c. 1), s. 21(3)
F3Words in s. 1143(3) substituted (with effect in accordance with s. 21(5)(6) of the amending Act) by Finance Act 2019 (c. 1), s. 21(4)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: