Section 19 Chargeable profits

United Kingdom

(1)

This section applies F1for the purposes of the charge to corporation tax on income if a non-UK resident company carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.

(2)

The F2company's “chargeable profits” are its profits that are—

(a)

of a type mentioned in subsection (3), and

(b)

attributable to the permanent establishment in accordance with sections 20 to F324.

F4(2A)

But the company's “chargeable profits” do not include—

(a)

profits of a trade of dealing in or developing UK land (see section 5B),

(b)

profits of a UK property business,

(c)

profits consisting of other UK property income, or

(d)

profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of its UK property business or for the purposes of enabling it to generate other UK property income.

(3)

The types of profits referred to in subsection (2)(a) are—

(a)

trading income arising directly or indirectly through or from the establishment, F5and

(b)

income from property or rights used by, or held by or for, the establishment.

F6(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(4)

For the purposes of the charge to corporation tax on chargeable gains accruing to the company, see section 2B(3) of TCGA 1992.

(5)

That subsection provides (among other things) that the gains are chargeable to corporation tax only so far as they are attributable to the permanent establishment in accordance with sections 20 to F824 of this Act.

Annotations

Textual amendments

F1: Words in s. 19(1) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 112(2)
F2: Words in s. 19(2) substituted (with effect in accordance with s. 81 of the amending Act) by Finance Act 2016 (c. 24), s. 76(8)(a) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))
F3: Word in s. 19(2)(b) substituted (for chargeable periods beginning on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 7 paras. 3(a), 30
F4: S. 19(2A) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 13, 35 (with Sch. 5 para. 36)
F5: Word in s. 19(3)(a) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 112(3)(a)
F6: S. 19(3)(c) omitted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 1 para. 112(3)(b)
F7: S. 19(4)(5) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 112(4)
F8: Word in s. 19(5) substituted (for chargeable periods beginning on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 7 paras. 3(b), 30