[F1Circumstances in which exit charge payment plan may be entered intoU.K.
Textual Amendments
F1Sch. 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
1(1)This Part of this Schedule and Part 3 of this Schedule apply where an eligible company—U.K.
(a)ceases to be resident in the United Kingdom,
(b)on ceasing to be so resident, becomes resident in another EEA state, and
(c)is liable to pay qualifying corporation tax in respect of the migration accounting period.
(2)The company may defer payment of some or all of the qualifying corporation tax if it enters into an exit charge payment plan in respect of it in accordance with this Schedule.
(3)The company may enter into an exit charge payment plan only if conditions A to C are met.
(4)Condition A is that before the end of the period of 9 months beginning immediately after the migration accounting period—
(a)an application to enter into the exit charge payment plan is made to Her Majesty's Revenue and Customs, and
(b)the application contains details of all the matters which are required by Part 3 of this Schedule to be specified in the plan.
(5)Condition B is that on ceasing to be resident in the United Kingdom, the company carries on a business in an EEA state.
(6)Condition C is that, on becoming resident in the other EEA state, the company is not treated as resident in a territory outside the European Economic Area for the purposes of any double taxation arrangements.
(7)In this paragraph—
“double taxation arrangements” means arrangements which are made by two or more territories with a view to affording relief from double taxation and which have effect at the time when the company ceases to be resident in the United Kingdom;
“eligible company” means a company that has a right to freedom of establishment protected by Article 49 of the Treaty on the functioning of the European Union or established by Article 31 of the Agreement on the European Economic Area.
(8)In this Part of this Schedule—
(a)references to the migration accounting period are to—
(i)in a case where an accounting period comes to an end on the company ceasing to be resident in the United Kingdom, that accounting period, and
(ii)in a case not falling within sub-paragraph (i), the accounting period during which the company ceases to be resident in the United Kingdom,
(b)references to a Part 1 company are to a company in relation to which this Part of this Schedule applies, and
(c)references to Part 3 of this Schedule are to Part 3 of this Schedule as it applies to a Part 1 company.]