09/06/2026
Foreign permanent establishment exemption to become mandatory from 2027
It has been announced that for most UK resident companies, it will be mandatory for profits and losses attributable to a foreign permanent establishment (“branch”) to be exempt from UK tax.
This will be effective for accounting periods beginning on or after 1 January 2027, with detailed guidance to follow shortly.
Until now, such an exemption has been optional, and not taken up by many taxpayers.
Sarah Howarth, Tax Director and International tax expert at Price Bailey, explains what this means and what's changing in our Quick Read.🔗 https://www.pricebailey.co.uk/quick-reads/foreign-permanent-establishment-exemption/