Taxation (International and Other Provisions) Act 2010 Schedule 7 Part 18

Relocation of section 61 of F(No.2)A 2005 (paragraphs 107–110)

Schedule 7 Part 18 moves provisions about European companies (SEs) that cease to be UK resident into Schedule 18 of the Finance Act 1998, ensuring that HMRC can still pursue tax liabilities that arose while such companies were in the UK.

• A new Part 10A is inserted into Schedule 18 of the Finance Act 1998, dealing specifically with Societas Europaea (SE) companies.
• If a company ceases to be UK resident during the formation of an SE by merger, the tax return and assessment rules continue to apply to pre-departure liabilities as though the company were still UK resident — and if the company no longer exists, the SE steps into its shoes.
• If an SE transfers its registered office out of the UK and ceases to be UK resident, the same principle applies: pre-departure tax liabilities and matters are treated as if the SE were still UK resident.
• Section 61 of the Finance (No. 2) Act 2005, which previously covered these continuity rules, is repealed as its content has been relocated.