SCHEDULES

C1SCHEDULE 36Agreement between UK and Switzerland

Annotations:
Modifications etc. (not altering text)

PART 2The past

Effect if P eligible for clearance

6

1

This paragraph sets out the effect of the Part 2 certificate if P is eligible for clearance.

2

P ceases to be liable to tax on qualifying amounts.

3

Sub-paragraph (2) does not apply to a qualifying amount if—

a

the amount was held in the United Kingdom,

b

at some point during the period beginning with 6 October 2011 and ending immediately before the start date, it ceased to be held in the United Kingdom, and

c

after that point (but before the start date) it began to be held in Switzerland.

4

Instead, such part of the one-off payment as is attributable (on a just and reasonable basis) to the qualifying amount is to be treated as if it were a credit allowable against the tax due from P taking account of that amount.

5

The meaning of tax due “taking account of” an amount is explained in Part 5 of this Schedule.

6

The form in which a qualifying amount was held in the United Kingdom is irrelevant (so references in sub-paragraph (3) to the amount include an asset representing the amount).

7

The total qualifying amounts to which sub-paragraphs (2) and (4) can apply as a result of the Part 2 certificate is limited to X.

8

If the total exceeds X, the particular qualifying amounts to which those sub-paragraphs apply are assumed to be those that would produce the most beneficial outcome for P.

9

X is—

a

in a case falling within Article 9(3), the value of the omitted taxable base by reference to which the one-off payment was calculated, and

b

in any other case, the value shown in the Part 2 certificate as the value of the relevant capital (Cr).