With effect from 19 July 2011 (FA 2011, Sch. 13, para. 31), a company has been able to elect for the profits of its foreign permanent establishments (PEs; see ¶764-260) to be exempt from corporation tax (see ¶764-780). The corollary is that any losses made by the PE will not attract relief in the UK. As the election is irrevocable, and applies to all existing and future PEs of the company, the decision to make an election is not to be taken lightly.

The election does not apply to profits or losses that are, or would be if the company were non-UK resident:

(1)profits of the company's trade of dealing in or developing UK land (¶700-700 and ¶712-360) (CTA 2009, s. 18A(2A));

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