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HMRC internal manual

Company Taxation Manual

Residence: outward company or permanent establishment migration: liabilities arising: deferral of exit charges: eligible companies and conditions

TMA70/SCH3ZB/PART1 - companies ceasing to be UK resident

Eligible companies are those which have right to freedom of establishment - see CTM34131. These are companies

  • incorporated in an EU or EEA Member State, and
  • which are UK resident but cease to be so, and
  • which become resident in another EU or EEA Member State, and
  • which are liable to pay CT exit charges (see CTM34130).

Conditions

  1. The company must make an application to HMRC for an ‘exit charge payment plan’ within nine months of the end of the migration accounting period, giving the details outlined at CTM34133.
  2. On ceasing to be resident in the UK, the company must carry on business in an EEA State.
  3. On becoming resident in the other EEA State, the company is not treated as resident in a territory outside the EEA under any double taxation arrangements in force at that time.

TMA70/SCH3ZB/PART2 - UK permanent establishments of non-UK resident companies

Eligible companies under this heading are those

  • incorporated in an EU or EEA Member State, and
  • which are non-UK resident but which trade in the UK through a permanent establishment and a charging event occurs (see CTM34130), and
  • which are liable to pay CT exit charges.

Condition

The company must make an application to HMRC for an ‘exit charge payment plan’ within nine months of the end of the migration accounting period, giving the details outlined at CTM34133.

Migration accounting period

Migration accounting period means the accounting period which ends on migration of the company, or if it does not then end the period in which the company ceases to be UK resident.