Section 21 — Corporation Tax Act 2009: The separate enterprise principle

The separate enterprise principle 21 1 The profits of the non-UK resident company that are attributable to the permanent establishment are those that the establishment might be expected to make if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the non-UK resident company through the permanent establishment and through the other parts of the non-UK resident company .

2 In applying subsection (1) assume that—

a the permanent establishment has the same credit rating as the non-UK resident company, and b the permanent establishment has such equity and loan capital as it could reasonably be expected to have in the circumstances specified in that subsection. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .