In HMRC v English Holdings (BVI) [2017] UKUT 842 (14 December 2017) the UT found that English Holdings was entitled under ITA 2007 s 64 to set off against the profits from its letting business the loss incurred in its permanent establishment (PE) trade even though the profits of the letting business were within the charge to income tax and if it had earned profits in its PE trade those profits would have been chargeable to corporation tax.
English Holdings was a company registered in the British Virgin Islands and was not resident in the UK. It had a PE in the UK through which it carried on the activity of trading in UK land. If it had made profits through its PE English Holdings would have been chargeable to corporation tax on those profits but it made a loss of over...