Taxes Management Act 1970 section 6

Entering into a plan [TMA 1970 Sch 3ZAA para 6]

Section 6 of Schedule 3ZAA sets out how a taxpayer applies to enter into a CGT exit charge payment plan with HMRC, the requirements for a valid application, and the circumstances in which a plan will be treated as void.

• The taxpayer must apply to HMRC on or before the date the exit charge is due (generally 31 January following the tax year), providing all the details required by the Schedule.
• The plan is formally entered into when the taxpayer agrees to pay the deferred exit charge (plus any interest) in accordance with the plan, and an HMRC officer agrees to accept payment on that basis.
• A plan is void if the event giving rise to the exit charge is part of arrangements whose main purpose, or one of whose main purposes, is to defer payment of the charge.
• A plan is also void if the taxpayer has not fully and accurately disclosed all facts and considerations material to HMRC's decision to accept payment under the plan.