On 14 December 2017, the Upper Tribunal2 upheld a First-tier decision that a UK permanent establishment’s (PE’s) trading losses could be offset against the non-UK company’s rental income from UK land.

For our earlier commentary on the First-tier Tribunal decision, see here.

Given the impending move, from April 2020, to taxing non-resident companies holding UK land under the corporation tax regime, the ongoing effects of this decision are likely to be limited.

The decision can be viewed here.