background image
4.5. PE Risk Grid for Foreign Entities Involved in Business Activities

The following grid depicts the potential risk of having a PE in the UK under UK domestic law. Note that whether or not a PE is found to exist in practice, depends on the specific facts and circumstances of the individual case.    

ACTIVITY                               POTENTIAL PE RISK
                             High Moderate Remote
Market research                     X
Solicitation                               X
Procurement                           X        
Provision of services                       X       
Secondment of personnel                X             
Commissionaire and similar                X    
Post-restructuring low-risk activity             X         
Ownership, rental/operation of real estate        X       
Force of attraction                                NO
Branch profits remittance tax                                  NO