Income Tax Act 2007 Schedule 2 paragraph 138

Transfers of assets abroad: company residence for transfers between 20 March 1990 and 29 November 1993

Paragraph 138 provides a special transitional rule for determining the residence of a company for the purposes of the transfer of assets abroad provisions, where the relevant transfer or associated operation took place during a specific historical window.

• This rule applies only to transfers and associated operations occurring on or after 20 March 1990 and before 30 November 1993.
• If a company was treated as resident in a territory outside the United Kingdom under any double taxation agreement during that period, it is regarded as non-UK resident for the purposes of the transfer of assets abroad rules.
• The definitions of "transfers" and "associated operations" follow those used in the transfer of assets abroad legislation in Chapter 2 of Part 13 of the Income Tax Act 2007.
• This transitional provision ensures that the residence status assigned to a company by a double taxation treaty during that window is respected when applying the anti-avoidance rules on transfers of assets abroad.