Taxes Management Act 1970 section Schedule 3ZB paragraph 10

Content of a CT exit charge payment plan

Section Schedule 3ZB paragraph 10 sets out the required contents of a corporation tax exit charge payment plan, including company details, tax amounts, and how deferred tax is allocated across exit charge assets and liabilities.

• A Part 1 company must state the date it ceased to be UK resident and the EEA state where it has become resident; a Part 2 company must state its EEA state of residence and, if applicable, the date it ceased trading in the UK through a permanent establishment.
• All plans must include requirements for the company to provide ongoing information to HMRC about its exit charge assets and liabilities.
• The plan must specify the total qualifying corporation tax the company believes is due for the migration accounting period, the amount it wishes to defer (known as ECPP tax), and how that ECPP tax is split across each exit charge asset or liability.
• The ECPP tax attributable to each asset or liability is calculated as: (A ÷ B) × T, where A is the income or gains from that specific asset or liability, B is the total income or gains from all exit charge assets and liabilities, and T is the total ECPP tax.