Taxes Management Act 1970

[F1 17 (1) This paragraph applies where— U.K.

(a) the amount of ECPP tax attributable to an asset or liability under paragraph 10(6) is payable in instalments in accordance with paragraph 15, and

(b) a partial trigger event occurs in relation to the asset or liability (see sub-paragraph (4)) before the last instalment is payable.

(2) On the occurrence of that event, part of the outstanding balance in respect of the asset or liability (as defined in paragraph 15(5)) is payable.

(3) The part payable under sub-paragraph (2) is so much of the outstanding balance in respect of the asset or liability as is attributable to the transaction mentioned in sub-paragraph (4)(a) or (b).

(4) For the purposes of sub-paragraph (2), a partial trigger event occurs in relation to an asset or liability if—

(a) in the case of a financial exit charge asset or liability—

(i) there is a disposal of rights or liabilities under the loan relationship or derivative contract in question which amounts to a related transaction (as defined in section 304 or 596 of CTA 2009 as the case may be), but

(ii) the transaction does not result in the company ceasing to be party to the relationship or contract, and

(b) in the case of an intangible exit charge asset, there is a transaction which—

(i) results in a reduction in the accounting value of the asset, but

(ii) does not result in the asset ceasing to be recognised in the company's balance sheet.

(5) Where part of the outstanding balance in respect of an asset or liability is paid in accordance with sub-paragraphs (2) and (3), the remaining instalments due under paragraph 15 in respect of the asset or liability continue to be payable so far as they relate to the remaining asset or liability (subject to paragraph 16 and this paragraph).

(6) In sub-paragraph (5), the “remaining asset or liability” means—

(a) in a case within sub-paragraph (4)(a), the loan relationship or derivative contract as it exists following the related transaction,

(b) in a case within sub-paragraph (4)(b), the asset as it continues to be recognised on the balance sheet following the transaction mentioned in that sub-paragraph.

(7) For the purposes of sub-paragraphs (3) and (5)—

(a) the outstanding balance in respect of the asset or liability, and

(b) the remaining instalments due under paragraph 15 in respect of the asset or liability,

are to be apportioned on a just and reasonable basis between the transaction mentioned in sub-paragraph (4)(a) or (b) and the remaining asset or liability.

(8) In relation to an intangible exit charge asset that has no balance sheet value (or no longer has a balance sheet value), sub-paragraph (4)(b) applies as if, immediately before the transaction, it did have a balance sheet value.]

Textual Amendments

F1 Sch. 3ZB inserted (with effect in accordance with Sch. 49 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 49 para. 6