Taxes Management Act 1970 section 109B

Provisions for securing payment by company of outstanding tax

Section 109B sets out the conditions a company must satisfy before it ceases to be UK resident, to ensure that any outstanding corporation tax liabilities are properly secured before departure.

• A company must notify HMRC of its intention to leave the UK and specify the planned migration date.
• The company must provide HMRC with an estimate of the tax due for periods before migration and propose arrangements for paying it, which may include a CT exit charge payment plan.
• HMRC must approve the payment arrangements, unless the tax is being secured through a CT exit charge payment plan, in which case HMRC approval is not required for that element.
• Any dispute over the amount of tax payable is referred to the tribunal, whose decision is final, and any HMRC approval obtained using incomplete or inaccurate information is void.