Corporation Tax Act 2009 section 333

Company ceasing to be UK resident

Section 333 deals with the tax treatment of a company's loan relationships when it ceases to be resident in the United Kingdom, triggering a deemed disposal and reacquisition at fair value.

• When a company ceases to be UK resident, it is treated as having disposed of and immediately reacquired all assets and liabilities representing its loan relationships at their fair value
• This deemed disposal does not apply to loan relationship assets or liabilities that continue to be held for the purposes of a UK permanent establishment, a trade of dealing in or developing UK land, a UK property business, or generating other UK property income
• The deemed disposal also does not apply where the company is leaving a corporate group at the same time as ceasing to be UK resident, provided certain conditions relating to intra-group loan relationship transfers are met
• The effect is to crystallise any unrealised gains or losses on loan relationships at the point the company leaves the UK tax net, except where those relationships remain within the scope of UK corporation tax