Part III Income Tax, Corporation Tax and Capital Gains Tax

chapter V Management

Company migration

130 Provisions for securing payment by company of outstanding tax.

(1)

The requirements of subsections (2) and (3) below must be satisfied before a company ceases to be resident in the United Kingdom otherwise than in pursuance of a Treasury consent.

(2)

The requirements of this subsection are satisfied if the company gives to the Board—

(a)

notice of its intention to cease to be resident in the United Kingdom, specifying the time (“the relevant time”) when it intends so to cease;

(b)

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 that time; and

(c)

particulars of the arrangements which it proposes to make for securing the payment of that tax.

(3)

The requirements of this subsection are satisfied if—

(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 relevant time; and

(b)

those arrangements as so made are approved by the Board for the purposes of this subsection.

(4)

If any question arises as to the amount which should be regarded for the purposes of subsection (3) above as the amount of the tax which is or will be payable by the company in respect of periods beginning before the relevant time, that question shall be referred to the Special Commissioners, whose decision shall be final.

(5)

If any information furnished by the company for the purpose of securing the approval of the Board under subsection (3) above does not fully and accurately disclose all facts and considerations material for the decision of the Board under that subsection, any resulting approval of the Board shall be void.

(6)

In this section “Treasury consent” means a consent under section 765 of the Taxes Act 1988 (restrictions on the migration etc. of companies) given for the purposes of subsection (1)(a) of that section.

(7)

In this section and sections 131 and 132 below any reference to the tax payable by a company includes a reference to—

(a)

any amount of tax which it is liable to pay under regulations made under section 203 of the Taxes Act 1988 (PAYE);

(b)

any income tax which it is liable to pay in respect of payments to which section 350(4)(a) of that Act (company payments which are not distributions) applies;

(c)

any amount representing income tax which it is liable to pay under—

(i)

regulations made under section 476(1) of that Act (building societies);

(ii)

section 479 of that Act (interest paid on deposits with banks etc.); or

(iii)

section 555 of that Act (entertainers and sportsmen);

(d)

any amount which it is liable to pay under section 559(4) of that Act (sub-contractors in the construction industry); and

(e)

any amount which it is liable to pay under paragraph 4 of Schedule 15 to M1Finance Act 1973 (territorial extension of charge of tax).

(8)

In this section and section 132 below any reference to the tax payable by a company in respect of periods beginning before any particular time includes a reference to any interest on the tax so payable, or on tax paid by it in respect of such periods, which it is liable to pay in respect of periods beginning before or after that time.

(9)

In this section and sections 131 and 132 below any reference to a provision of the Taxes Act 1988 shall be construed, in relation to any time before 6th April 1988, as a reference to the corresponding enactment repealed by that Act.

(10)

This section and sections 131 and 132 below shall be deemed to have come into force on 15th March 1988.