Corporation Tax Act 2009 Schedule 2 paras 13-15

Exceptions to the UK incorporation residence rule

Schedule 2, paragraphs 13 to 15 set out transitional exceptions to section 14 of the Corporation Tax Act 2009, which treats UK-incorporated companies as UK resident, preserving the non-resident status of certain companies that left the UK with Treasury consent before the current rules took effect.

• Companies that became non-UK resident before 15 March 1988 under Treasury consent, and were already exempt from the equivalent rule immediately before 1 April 2009, continue to be exempt from section 14.
• Companies that became non-UK resident on or after 15 March 1988 under Treasury consent, and were similarly exempt immediately before 1 April 2009, also continue to be exempt from section 14.
• The exemption is lost if the company ceases to carry on business, becomes UK resident again, or (for pre-15 March 1988 departures under a general consent) ceases to be taxable in a territory outside the UK.
• Key definitions include "Treasury consent" (consent under historic migration restriction provisions), "general consent" (a consent given generally rather than specifically), and "taxable" (liable to tax on income by reason of domicile, residence or place of management).