Part 5 Mineral extraction allowances

Chapter 6 Allowances and charges

Cases in which a person is entitled to a balancing allowance

F1431AForeign permanent establishment exemption

(1)

Subsection (2) applies if—

(a)

an election under section 18A of CTA 2009 has effect in relation to a company, and

(b)

the company carries on any trade which consists of, or includes, the working of a source of mineral deposits.

(2)

That trade so far as carried on through one or more permanent establishments outside the United Kingdom is treated for the purposes of this Part as a trade—

(a)

separate from any other trade of the company, and

(b)

all the profits and gains from which are not, or (if there were any) would not be, chargeable to tax.