Taxes Management Act 1970 Schedule 3ZB paragraph 1

Circumstances in which a CT exit charge payment plan may be entered into

Schedule 3ZB paragraph 1 sets out the circumstances in which a company that moves its tax residence out of the United Kingdom may defer paying corporation tax arising on that move by entering into a CT exit charge payment plan.

• A company that ceases to be UK resident, moves to a relevant EEA state, and has a corporation tax liability for the migration accounting period may apply to defer that tax under a CT exit charge payment plan.
• The company must apply to HMRC within nine months of the end of the migration accounting period, providing all details required by Part 3 of the Schedule, and must carry on a business in a relevant EEA state on leaving the UK.
• The company must not be treated as resident in a territory outside the European Economic Area under any double taxation arrangements when it becomes resident in the relevant EEA state.
• Only an eligible company — one with a right to freedom of establishment under Article 49 of the Treaty on the Functioning of the European Union or Article 31 of the EEA Agreement — may use this provision, and the destination state must be an EU member or party to a mutual tax recovery assistance agreement with the UK.