CIRD47070 - Intangible assets: international issues: intangible assets attributable to a foreign branch

Under CTA09/S18A, a company can elect to exclude profits attributable to any of its foreign permanent establishments from its corporation tax computation (see INTM281000+).

Where a CTA09/S18A election is effective:

• Under CTA09/S775(4), an intra-group transfer of an intangible asset which has been used at any time for the purposes of a foreign permanent establishment is not treated as tax-neutral. Instead, either the transfer will be treated as taking place at market value, or, if the asset has not been used exclusively for the purposes of a foreign permanent establishment, CTA09/S848A will apply to determine the transfer value (see CIRD40200+ and INTM283000+).

• A claim under CTA09/S827 to postpone the charge arising on the disposal of intangible assets held wholly for the purposes of a foreign permanent establishment (see CIRD42040) will not be necessary, since no such charge will arise.