{
  "url": "https://openlegislation.uk/finance-no-2-act-2023/section-198",
  "json_url": "https://openlegislation.uk/finance-no-2-act-2023/section-198.json",
  "legislation": "ukpga/2023/30",
  "legislation_title": "Finance (No. 2) Act 2023",
  "legislation_url": "https://openlegislation.uk/finance-no-2-act-2023",
  "path": "section/198",
  "kind": "section",
  "number": "198",
  "heading": "Eligible payroll costs and eligible tangible asset amount: permanent establishments",
  "text": "(1) Sections 196 and 197 apply in relation to permanent establishments with the following modifications.\n(2) In determining under section 196 the eligible payroll costs of a permanent establishment within section 232(2)(a) to (c), the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.\n(3) In determining under section 197 the eligible tangible asset amount of a permanent establishment within section 232(2)(a) to (c), the only assets to be taken into account are assets used in the business of the establishment.\n(4) Both the eligible payroll costs and the eligible tangible asset amount of a permanent establishment within section 232(2)(d) are nil.\n(5) If but for this subsection—\n(a) an amount would be taken into account under section 196 in respect of both a permanent establishment and the main entity, or\n(b) an asset would be taken into account under section 197 in respect of both a permanent establishment and the main entity,\nthe amount or asset is only to be taken into account in respect of the permanent establishment.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 198-198ZC substituted for s. 198 (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 33, 72(4)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2023/30/section/198",
    "retrieved_at": "2026-10-29T08:52:11.242356+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}