E2. Ceasing to be UK resident

Notice by company ceasing to be UK resident

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"(1)     Each of conditions A to D must be met before a company ceases to be resident in the United Kingdom[, subject to subsection (5A).

 

(2)     Condition A is that the company gives to the Commissioners for Her Majesty's Revenue and Customs notice of its intention to cease to be resident in the United Kingdom.

 

(3)     Condition B is that the notice specifies the time (“the migration time”) when the company intends to cease to be resident in the United Kingdom.

 

(4)     Condition C is that the company gives to the Commissioners—

(a)     a statement of the amount which, in its opinion, is the amount of the tax which is or will be payable by it in respect of periods beginning before the migration time, and

(b)     particulars of the arrangements which it proposes to make for securing the payment of that tax (which may include a proposal to enter into a CT exit charge payment plan in accordance with Schedule 3ZB).

 

(5)     Condition D is that—

(a)     arrangements are made by the company for securing the payment of the tax which is or will be payable by it in respect of periods beginning before the migration time, and

(b)     those arrangements, as made by the company, are approved for the purposes of this subsection by the Commissioners.

 

(5A)     Condition D does not apply to the extent that payment of the tax is to be secured by the company entering into a CT exit charge payment plan in accordance with Schedule 3ZB." (TMA 1970, s.109B(1) - (5A))

 

Extended definition of tax
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"(1)     In sections 109B to 109E, any reference to the tax payable by a company includes a reference to—

(a)     any amount which the company is liable to pay under section 77C (territorial extension of charge to tax),

(b)     any amount of tax which the company is liable to pay under regulations made under section 684 of ITEPA 2003 (PAYE),

(c)     any amount which the company is liable to pay under sections 61 and 62(1)(a) of the Finance Act 2004 (sub-contractors in the construction industry),

(d)     any income tax which the company is liable to pay in respect of payments within section 946 of ITA 2007 (collection of tax: deposit-takers, building societies and certain companies), and

(e)     any amount representing income tax which the company is liable to pay under section 966 of ITA 2007 (entertainers and sportsmen).

 

(2)     In sections 109B to 109E read in accordance with subsection (1), any reference to the tax payable by a company in respect of periods beginning before any particular time includes a reference to any interest—

(a)     on the tax so payable, or

(b)     on tax paid by the company in respect of such periods,

which the company is liable to pay in respect of periods beginning before or after that time." (TMA 1970, s.109F(1) - (2))

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Referral to Tribunal to determine quantum of tax to be secured

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"(6)     If any question arises as to the amount which, for the purposes of subsection (5), should be regarded as the amount of tax which is or will be payable by the company in respect of periods beginning before the migration time, that question is to be referred to the tribunal.

 

(7)     A decision of the tribunal under subsection (6) is final, despite sections 11 and 13 of the TCEA 2007 (appeals from tribunal decisions)." (TMA 1970, s.109B(6) - (7))

 

HMRC approval void if full disclosure not made

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(8)     If any information furnished by the company for the purpose of securing the Commissioners' approval under subsection (5) does not fully and accurately disclose all facts and considerations material for the Commissioners' decision under that subsection, any resulting approval is void." (TMA 1970, s.109B(8))

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Consequences of non-compliance

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Collection of tax from third parties - see Chapter T2

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Penalties - see Chapter V5

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