Corporation Tax Act 2009

Company moving abroad U.K.

333 Company ceasing to be UK resident U.K.

(1) If a company ceases to be UK resident, this Part applies as if—

(a) immediately before so ceasing the company had assigned the assets and liabilities which represent its loan relationships for consideration of an amount equal to their fair value at that time, and

(b) it had immediately reacquired them for consideration of the same amount.

(2) Subsection (1) does not apply in relation to an asset or liability so far as immediately after the company ceases to be UK resident the asset is held or the liability is owed[F1 —

(a)] for the purposes of a permanent establishment of the company in the United Kingdom[F2 ,

(b) for the purposes of the company's trade of dealing in or developing UK land,

(c) for the purposes of the company's UK property business, or

(d) for the purposes of enabling the company to generate other UK property income (within the meaning given by section 5(6)).]

(3) Subsection (1) does not apply if—

(a) the conditions in section 344(1)(a) to (c) are met in relation to the company (transferee leaving group after replacing transferor as party to loan relationship), and

(b) it ceases to be UK resident at the same time as it ceases to be a member of the relevant group.

(4) In subsection (3) “the relevant group” has the meaning given in section 344(4).

Textual Amendments

F1 S. 333(2) renumbered as s. 333(2)(a) (6.4.2020) by virtue of Finance Act 2019 (c. 1), Sch. 5 paras. 16(a), 35 (with Sch. 5 para. 36)

F2 S. 333(2)(b)-(d) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 16(b), 35 (with Sch. 5 para. 36)

334 Non-UK resident company ceasing to hold loan relationship for [F3 section 333(2) purposes] U.K.

(1) This section applies if an asset or liability representing a loan relationship of a company which is not UK resident ceases to be held or owed for [F4 section 333(2) purposes] in circumstances not involving a related transaction (but see subsection (3)).

(2) This Part applies as if—

(a) immediately before the asset or liability so ceases the company had assigned it, so far as so ceasing, for consideration of an amount equal to its fair value at that time, and

(b) the company had immediately reacquired it for consideration of the same amount.

(3) This section does not apply if—

(a) the conditions in section 344(1)(a) to (c) are met in relation to the company (transferee leaving group after replacing transferor as party to loan relationship), and

(b) the asset or liability mentioned in subsection (1) ceases to be held or owed for [F5 section 333(2) purposes] at the same time as the company ceases to be a member of the relevant group.

(4) In subsection (3) “the relevant group” has the meaning given in section 344(4).

[F6 (5) An asset or liability ceases to be held or owed for section 333(2) purposes if and in so far as—

(a) it ceases to be held or owed for any purposes mentioned in section 333(2), and

(b) on doing so, it does not begin or continue to be held or owed for any of the other purposes so mentioned.]

Textual Amendments

F3 Words in s. 334 heading substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 17(2), 35 (with Sch. 5 para. 36)

F4 Words in s. 334(1) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 17(3), 35 (with Sch. 5 para. 36)

F5 Words in s. 334(3)(b) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 17(4), 35 (with Sch. 5 para. 36)

F6 S. 334(5) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 17(5), 35 (with Sch. 5 para. 36)