Taxes Management Act 1970 section Sch 3ZAA paras 2-3

Eligibility

Section Sch 3ZAA paragraphs 2 and 3 set out who is eligible to enter into a capital gains tax exit charge payment plan, covering both individuals resident in EEA states outside the UK and trustees of settlements who cease to be UK resident.

• An individual resident in an EEA state outside the UK who faces a CGT exit charge may enter a payment plan if they had freedom of establishment rights at the time of the triggering event, or if they subsequently trade through an EEA branch or agency using the relevant assets.
• Trustees of a settlement who cease to be UK resident and face an exit charge may enter a payment plan if they had freedom of establishment rights at the point of ceasing UK residence.
• For trustees to qualify, the assets must have been used for an economically significant activity in the UK immediately before the move, and for an economically significant activity in the new EEA state immediately after.
• In both cases, the payment plan can cover any one or more of the assets to which the exit charge relates, giving flexibility over which assets are included.