INTM200810 - Controlled Foreign Companies: »Ê¹ÚÌåÓýapp CFC Charge Gateway: Chapter 4 - Profits attributable to UK activities: Exclusions - Trading profits: Business premises condition
TIOPA10/S371DG
»Ê¹ÚÌåÓýapp business premises condition requires the CFC to have a physical presence in its territory of residence. This is intended to prevent “brass plateâ€� arrangements from benefitting from the conditions for exclusion.
»Ê¹ÚÌåÓýapp business premises in the territory have to be in use by the business with a reasonable degree of permanence, or at least be intended to be used in this way in the future. A “reasonable degree of permanenceâ€� can be taken for these purposes to mean business premises that will be used for at least 12 months.
In addition, those premises need to be the place from which the CFC’s activities in that territory are mainly carried on - it needs to be the main place of business in that territory of residence.