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Finance Act 2013

Type Public General Act

Publication 2013-07-17

Last updated 2025-12-16

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(1) Section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements) is amended as follows.

(2) In subsection (1)(c), for the words from “either resident” to the end substitute “ resident in the United Kingdom for the year ”.

(3) For subsection (2) substitute—

(2) The condition as to residence is that— (a) there is no time in the year when the trustees are resident in the United Kingdom, or (b) there is such a time but, whenever the trustees are resident in the United Kingdom during the year, they fall to be regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom.

(4) In subsection (3), omit “and ordinarily resident”.

92

(1) Section 87 (non-UK resident settlements: attribution of gains to beneficiaries) is amended as follows.

(2) In subsection (1), for the words from “the trustees” to the end substitute “ there is no time in that year when the trustees are resident in the United Kingdom ”.

(3) In subsection (4)(a), omit “and ordinarily resident”.

93

In section 88(1) (gains of dual resident settlements)—

(a) in paragraph (a), omit “and ordinarily resident”, and

(b) in paragraph (b), omit “and ordinary residence”.

94

(1) Section 96 (payments by and to companies) is amended as follows.

(2) In subsection (3), omit “or ordinarily resident”.

(3) In subsection (4), in each of paragraphs (a) and (b), omit “or ordinarily resident”.

(4) In subsection (5)(b), omit “or ordinary residence”.

95

In section 97 (supplementary provisions), in subsection (1)(a), for “neither resident nor ordinarily resident” substitute “ not resident ”.

96

In section 99 (application of Act to unit trust schemes), in subsection (1)(c), omit “and ordinarily resident”.

97

In section 106A(5A) (identification of securities: capital gains tax)—

(a) in paragraph (a), for “neither resident nor ordinarily resident” substitute “ not resident ”, and

(b) in paragraph (b), omit “or ordinarily resident”.

98

(1) Section 159 (non-residents: roll-over relief) is amended as follows.

(2) In subsection (2)(b), omit “or ordinarily resident”.

(3) In subsection (5), in the definition of “dual resident”, omit “or ordinarily resident”.

99

(1) Section 166 (gifts to non-residents) is amended as follows.

(2) In subsection (1), for “neither resident nor ordinarily resident” substitute “ not resident ”.

(3) In subsection (2)(a), omit “or ordinarily resident”.

100

(1) Section 167 (gifts to foreign-controlled companies) is amended as follows.

(2) In subsection (2)(a), for “neither resident nor ordinarily resident” substitute “ not resident ”.

(3) In subsection (3), for the words from “or ordinarily resident” to “nor ordinarily resident” substitute “ in the United Kingdom is to be regarded as not resident ”.

101

(1) Section 168 (emigration of donee) is amended as follows.

(2) In subsection (1)(b), for “becomes neither resident nor ordinarily resident” substitute “ ceases to be resident ”.

(3) In subsection (4), for “becoming neither resident nor ordinarily resident” substitute “ ceasing to be resident ”.

(4) In subsection (5)—

(a) in paragraph (a), for “becoming neither resident nor ordinarily resident” substitute “ ceasing to be resident ”, and

(b) in paragraph (b), omit “or ordinarily resident”.

102

In section 169 (gifts into dual resident trusts), in subsection (3)(a), omit “and ordinarily resident”.

103

In section 199 (exploration or exploitation assets: deemed disposals), in subsection (2), for “who is not resident and not ordinarily resident in the United Kingdom” substitute “ in respect of whom the residence condition (see section 2(1A)) is not met ”.

104

(1) Section 261 (section 260 relief: gifts to non-residents) is amended as follows.

(2) In subsection (1), for “neither resident nor ordinarily resident” substitute “ not resident ”.

(3) In subsection (2)(a), omit “or ordinarily resident”.

105

In Schedule 1 (application of exempt amount and reporting limits in cases involving settled property), in paragraph 2(7)(a), omit “and ordinarily resident”.

106

(1) Schedule 4A (disposal of interest in settled property: deemed disposal of underlying assets) is amended as follows.

(2) In paragraph 5(1) and (2), omit “and ordinarily resident”.

(3) In paragraph 6(1)—

(a) for “in the relevant” substitute “ as respects the relevant ”, and

(b) for the words from “either” to the end substitute “ met the residence condition set out in section 2(1A) ”.

(4) If any of the previous 5 years of assessment mentioned in paragraph 6(1) of Schedule 4A ends before 6 April 2013, the test in that paragraph is to be applied, as respects any such year ending before that date, as if that paragraph had not been amended by sub-paragraph (3).

107

(1) Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.

(2) In paragraph 1A(3), for the words from “the beneficiary” to the end substitute “ , as respects that year, the beneficiary meets the residence condition set out in section 2(1A) ”.

(3) In paragraph 4—

(a) in sub-paragraph (1), omit “and ordinarily resident”, and

(b) in sub-paragraph (2), omit “and ordinarily resident”.

(4) In paragraph 5(1)—

(a) in paragraph (a), omit “and ordinarily resident”, and

(b) in paragraph (b), omit “and ordinary residence”.

(5) In paragraph 9(3)(a)(i), omit “and ordinarily resident”.

(6) In paragraph 10(1), omit “and ordinarily resident”.

108

(1) Schedule 5 (attribution of gains to settlors with interest in non-resident or dual resident settlement) is amended as follows.

(2) In paragraph 2A(4)—

(a) in paragraph (a), for “become on or after 17th March 1998 neither resident nor ordinarily resident” substitute “ cease on or after 17 March 1998 to be resident ”, and

(b) in paragraph (b), omit “and ordinarily resident”.

(3) In paragraph 9(4)—

(a) in paragraph (a), for “become on or after 19th March 1991 neither resident nor ordinarily resident” substitute “ cease on or after 19 March 1991 to be resident ”, and

(b) in paragraph (b), omit “and ordinarily resident”.

(4) The amendments made by this paragraph apply to changes in the residence status of trustees on or after 6 April 2013.

109

(1) Schedule 5A (settlements with foreign element: information) is amended as follows.

(2) In paragraph 2(1)—

(a) in paragraph (c), for “neither resident nor ordinarily resident” substitute “ not resident ”, and

(b) in paragraph (d), omit “and ordinarily resident”.

(3) In paragraph 3—

(a) in sub-paragraph (1)—

(i) in paragraph (a), for “neither resident nor ordinarily resident” substitute “ not resident ”, and

(ii) in paragraph (b), omit “and ordinarily resident”, and

(b) in sub-paragraph (3), for “either resident or ordinarily resident” substitute “ resident ”.

(4) In paragraph 4—

(a) in sub-paragraph (1)—

(i) in paragraph (a), for “neither resident nor ordinarily resident” substitute “ not resident ”, and

(ii) in paragraph (b), omit “and ordinarily resident”, and

(b) in sub-paragraph (3), for “either resident or ordinarily resident” substitute “ resident ”.

(5) In paragraph 5(1)—

(a) in paragraph (a), for the words from “become” to “ordinarily resident” substitute “ cease at any time (the relevant time) on or after the commencement day to be resident ”, and

(b) in paragraph (b), omit “and ordinarily resident”.

(6) The amendments made by this paragraph apply as follows—

(a) the amendments made by sub-paragraph (2) apply in relation to transfers of property made on or after 6 April 2013,

(b) the amendments made by sub-paragraphs (3) and (4) apply in relation to settlements created on or after that date, and

110

(1) Schedule 5B (enterprise investment scheme: re-investment) is amended as follows.

(2) In paragraph 1—

(a) in sub-paragraph (1)(d), omit “or ordinarily resident”, and

(b) in sub-paragraph (4)(a), omit “or ordinarily resident”.

(3) In paragraph 3(3)(b), omit “or ordinarily resident”.

(4) In paragraph 19(1), in the definition of “non-resident”, for “neither resident nor ordinarily resident” substitute “ not resident ”.

(5) The amendments made by this paragraph apply in cases where the accrual time is on or after 6 April 2013 (even if the qualifying investment was made before that date).

111

In Schedule 7C (reliefs for transfers to approved share plans), in paragraph 8, for paragraph (a) substitute—

(a) the claimant would be chargeable to capital gains tax under section 2(1) (persons and gains chargeable to capital gains tax) in respect of the gain, or

Commencement

112

(1) The amendments made by this Part of this Schedule have effect in relation to a person's liability to capital gains tax for the tax year 2013-14 or any subsequent tax year.

(2) Sub-paragraph (1) is without prejudice to any provision in this Part of this Schedule about the application of a particular amendment.

PART 4 — Other amendments

FA 1916

113

In FA 1916, omit section 63 (exemption from taxation of municipal securities issued in America).

F(No.2)A 1931

114

(1) In section 22 of F(No.2)A 1931 (provisions in cases where Treasury has power to borrow money), in subsection (1)(a) and (b), omit “ordinarily”.

(2) Nothing in sub-paragraph (1) limits the power conferred by section 60(1) of FA 1940.

(3) Subject to sub-paragraph (5), the amendment made by sub-paragraph (1) does not affect a pre-commencement security (nor the availability of the relevant exemption).

(4) Sub-paragraph (5) applies to a person who becomes the beneficial owner of a pre-commencement security (or an interest in such a security) on or after 6 April 2013.

(5) If obtaining the relevant exemption is conditional on being not ordinarily resident in the United Kingdom, any enactment conferring the exemption is to have effect (in relation to a person to whom this sub-paragraph applies) as if obtaining the exemption were conditional instead on being not resident in the United Kingdom.

(6) In this paragraph—

“pre-commencement security” means a FOTRA security (as defined in section 713 of ITTOIA 2005) issued before the day on which this Act is passed;

“the relevant exemption”, in relation to a pre-commencement security, means the exemption for which provision is made in the exemption condition (as defined in that section).

TMA 1970

115

TMA 1970 is amended as follows.

116

(1) In section 98 (special returns etc), in subsection (4E)(d), omit “ordinarily”.

(2) The amendment made by this paragraph takes effect on the coming into force of regulations made under section 17(3) of F(No.2)A 2005 (authorised investment funds) by virtue of the amendment made by paragraph 136.

117

In Schedule 1A (claims etc not included in returns), in paragraph 2(6), omit “or not ordinarily resident”.

IHTA 1984

118

(1) Section 157 of IHTA 1984 (non-residents' bank accounts) is amended as follows.

(2) For subsection (2) substitute—

(2) This section applies to a person who is not domiciled and not resident in the United Kingdom immediately before his death.

(3) In subsection (3), for “, resident or ordinarily resident” substitute “ or resident ”.

(4) In subsection (4)—

(a) in paragraph (a), omit “or ordinarily resident”, and

(b) in paragraph (b), omit “or ordinarily resident” and “and ordinarily resident”.

(5) The amendments made by this paragraph do not apply if the person dies before 6 April 2013.

FA 2004

119

Part 4 of FA 2004 (pension schemes etc) is amended as follows.

120

In section 185G (disposal by person holding directly), in subsection (3)(a), omit “, ordinarily resident”.

121

In section 205 (short service refund lump sum charge), in subsection (3), omit “, ordinarily resident”.

122

In section 205A (serious ill-health lump sum charge), in subsection (3), omit “, ordinarily resident”.

123

In section 206 (special lump sum death benefits charge), in subsection (3), omit “, ordinarily resident”.

124

In section 207 (authorised surplus payments charge), in subsection (3), omit “, ordinarily resident”.

125

In section 208 (unauthorised payments charge), in subsection (4), omit “, ordinarily resident”.

126

In section 209 (unauthorised payments surcharge), in subsection (5), omit “, ordinarily resident”.

127

In section 217 (persons liable to lifetime allowance charge), in subsection (5), omit “, ordinarily resident”.

128

In section 237A (liability of individual to annual allowance charge), in subsection (2), omit “, ordinarily resident”.

129

In section 237B (liability of scheme administrator), in subsection (8), omit “, ordinarily resident”.

130

In section 239 (scheme sanction charge), in subsection (4), omit “, ordinarily resident”.

131

In section 242 (de-registration charge), in subsection (3), omit “, ordinarily resident”.

132

The amendments of Part 4 of FA 2004 made by this Part of this Schedule have effect in relation to the tax year 2013-14 and any subsequent tax year.

FA 2005

133

(1) In section 30 of FA 2005 (qualifying trust gains: special capital gains tax treatment), in subsection (1), for paragraph (c) substitute—

(c) the trustees are resident in the United Kingdom during any part of the tax year, and

(2) The amendment made by this paragraph has effect in relation to the tax year 2013-14 and any subsequent tax year.

F(No.2)A 2005

134

F(No.2)A 2005 is amended as follows.

135

(1) In section 7 (charge to income tax on lump sum), in subsection (3), omit “, ordinarily resident”.

(2) The amendment made by this paragraph has effect in relation to the tax year 2013-14 and any subsequent tax year.

136

In section 18 (section 17(3): specific powers), in subsection (1)(f) and (g), omit “ordinarily”.

CTA 2009

137

CTA 2009 is amended as follows.

138

(1) In section 900 (which relates to roll-over relief for disposals of pre-FA 2002 assets), in subsection (2), omit “or ordinarily UK resident”.

(2) The amendment made by this paragraph applies in relation to gains accruing or treated as accruing on or after 6 April 2013.

139

(1) In section 936 (meaning of “UK estate” and “foreign estate”), in subsection (3), omit “or not ordinarily UK resident”.

(2) The amendment made by this paragraph applies if the tax year in question begins on or after 6 April 2013.

140

(1) In section 947 (aggregate income of the estate), in subsection (2)(b)(i), omit “who was ordinarily UK resident”.

(2) The amendment made by this paragraph applies if the tax year in question begins on or after 6 April 2013.

141

(1) In section 1009 (conditions relating to employee's income tax position), in subsection (5)(a), omit “and ordinarily UK resident”.

(2) The amendment made by this paragraph applies in relation to shares acquired on or after 6 April 2013.

142

(1) In section 1017 (condition relating to employee's income tax position), in subsection (4)(a), omit “and ordinarily UK resident”.

(2) The amendment made by this paragraph applies in relation to options obtained on or after 6 April 2013.

143

(1) In section 1025 (additional relief available if shares acquired are restricted shares), in subsection (5)(a), omit “and ordinarily UK resident”.

(2) The amendment made by this paragraph applies in relation to restricted shares acquired on or after 6 April 2013.

144

(1) In section 1032 (meaning of “chargeable event”), in subsection (5)(a), omit “and ordinarily UK resident”.

(2) The amendment made by this paragraph applies in relation to convertible shares acquired on or after 6 April 2013.

CTA 2010

145

(1) Section 1034 of CTA 2010 (purchase by unquoted trading company of own shares: requirements as to residence) is amended as follows.

(2) In subsections (1) and (2), omit “and ordinarily resident”.

(3) In subsection (3), omit “and ordinary residence” in both places.

(4) Omit subsection (4).

(5) The amendments made by this paragraph do not apply in relation to a purchase by an unquoted trading company of its own shares if the purchase takes place before 6 April 2013.

TIOPA 2010

146

In section 363A of TIOPA 2010 (residence of offshore funds which are undertakings for collective investment in transferable securities), in subsection (3), for “neither resident nor ordinarily resident” substitute “ not resident ”.

Constitutional Reform and Governance Act 2010

147

(1) In section 41 of the Constitutional Reform and Governance Act 2010 (tax status of MPs and members of the House of Lords), in subsection (2), omit “, ordinarily resident”.

(2) The amendment made by this paragraph has effect for the purposes of a member's liability to income tax or capital gains tax for the tax year 2013-14 or any subsequent tax year.

SCHEDULE 47

Relevant finance leases etc

1

Part 9A of TIOPA 2010 (controlled foreign companies) is amended as follows.

2

Chapter 5 (the CFC charge gateway: non-trading finance profits) is amended as follows.

3

In section 371ED (arrangements in lieu of dividends) in subsection (1) omit “(other than a relevant finance lease)”.

4

(1) Section 371EE (leases to UK resident companies etc) is amended as follows.

(2) In subsection (2)(b)(i) for “which is the subject of the lease” substitute “ (“the relevant asset”) which is the subject of the lease or making (directly or indirectly) an arrangement which would fall within subsection (3) ”.

(3) After subsection (2) insert—

(3) An arrangement would fall within this subsection if— (a) the arrangement would meet one or both of the following requirements— (i) it would not be a relevant finance lease; (ii) it would not involve the CFC, and (b) under the arrangement the other company would (directly or indirectly) purchase rights to use the relevant asset.

5

Chapter 22 (supplementary provision) is amended as follows.

6

In section 371VA (definitions) for the definition of “relevant finance lease” substitute—

“relevant finance lease” is to be read in accordance with section 371VIA,

7

(1) Section 371VG (finance profits) is amended as follows.

(2) In subsection (1) for paragraph (b) substitute—

(b) which are included in the CFC's assumed total profits for the accounting period in question and which— (i) arise from a relevant finance lease, but (ii) are not trading profits.

(3) In subsection (4)(b) omit “an arrangement which would be”.

8

(1) Section 371VH (interests in companies) is amended as follows.

(2) In subsection (9) omit the second sentence.

(3) After subsection (10) insert—

(10A) For the purposes of subsection (9), if for any relevant period accounts for a loan creditor are not prepared in accordance with international accounting standards or UK generally accepted accounting practice, any question relating to generally accepted accounting practice is to be determined in relation to the loan creditor for that period by reference to generally accepted accounting practice in relation to accounts prepared in accordance with international accounting standards.

9

After section 371VI insert—

(371VIA) (1) In this Part “relevant finance lease” means an arrangement falling within subsection (2) or (3). (An arrangement which is a loan relationship of any company does not fall within either of those subsections.) (2) An arrangement falls within this subsection if— (a) it provides for an asset to be leased or otherwise made available by a person (“the lessor”) to another person, and (b) in accordance with generally accepted accounting practice, it falls (or would fall) to be treated in the accounts of the lessor, or of a person connected with the lessor, as a finance lease or a loan. (3) A hire-purchase, conditional sale or other arrangement relating to an asset falls within this subsection if it does not fall within subsection (2) but is of a similar character to an arrangement which would fall within that subsection. (4) If for any relevant period accounts for a person are not prepared in accordance with international accounting standards or UK generally accepted accounting practice, any question relating to generally accepted accounting practice is to be determined for the purposes of this section in relation to that person for that period by reference to generally accepted accounting practice in relation to accounts prepared in accordance with international accounting standards. (5) In this section “accounts”, in relation to a company, includes accounts relating to two or more companies of which that company is one.

Limit on double taxation relief in cases involving qualifying loan relationships of CFCs

10

Part 2 of TIOPA 2010 (double taxation relief) is amended as follows.

11

Chapter 2 (double taxation relief by way of credit) is amended as follows.

12

In section 42 (limit on credit against corporation tax) after subsection (4) insert—

(5) See also section 49A which contains an additional limit on credit allowed in certain cases involving CFCs.

13

After section 49 insert—

(49A) (1) This section applies if— (a) a claim is made under Chapter 9 of Part 9A (controlled foreign companies: exemptions for profits from qualifying loan relationships) in relation to an accounting period (“the relevant period”) of a CFC (“the creditor CFC”), (b) in the relevant period, the creditor CFC has a qualifying loan relationship in relation to which another CFC is the ultimate debtor by virtue of section 371IG(4) or (5), and (c) a UK resident company (“the relevant UK company”) has loan relationship credits which arise in the relevant period from— (i) loan B (see section 371IG(3)(b)), or (ii) loans out of which loan B is wholly or partly funded (directly or indirectly). (2) So far as any credit allowed under section 18(2) to the relevant UK company is referable to loan relationship credits falling within subsection (1)(c) which arise in an accounting period of the relevant UK company, the credit must not exceed— $$R × S$where—R has the same meaning as in section 42(2), andS is—the relevant UK company's share of the relevant profit amount (see subsection (4)), orif only X% of the total amount of the loan relationship credits falling within subsection (1)(c) arises in the accounting period, X% of the relevant UK company's share of the relevant profit amount.(If the amount given by the formula above is nil, no credit is allowed.)$ (3) The limit on credit contained in subsection (2) is in addition to the limit given by section 42(2). (4) Take the following steps to determine the relevant profit amount and the relevant UK company's share of that amount. - Step 1 Determine the total amount of the loan relationship credits which arise in the relevant period from loan B to the person who made loan B. - Step 2 Deduct from the amount determined at step 1 above the credits from the creditor CFC's qualifying loan relationship determined at step 1 in section 371IF for the relevant period. The result is the relevant profit amount. - Step 3 On a just and reasonable basis, apportion the relevant profit amount amongst all the persons falling within subsection (5) (although the amount apportioned to a person may be nil). The relevant UK company's share of the relevant profit amount is the amount apportioned to it (and is nil if no amount is apportioned to it). (5) The following persons (apart from the creditor CFC) fall within this subsection— (a) the person who made loan B, and (b) any person who has made or received a loan out of which loan B is wholly or partly funded (directly or indirectly). (6) In this section— (a) references to loan B do not include any part of loan B— (i) which loan A (see section 371IG(3)(a)) is not made and used to fund, or (ii) in relation to which the requirement of section 371IG(3)(c) is not met, (b) “loan relationship credit” means, in relation to a person, a credit which the person has under Part 5 of CTA 2009 or would have were the person a UK resident company within the charge to corporation tax, and (c) “loan” has the same meaning as it has in Chapter 9 of Part 9A.

14

(1) In Chapter 3 (miscellaneous provisions), section 112 (deduction from income for foreign tax (instead of credit against UK tax)) is amended as follows.

(2) After subsection (3) insert—

(3A) Subsection (3B) applies if— (a) the requirements of section 49A(1)(a) to (c) are met, (b) amounts have been paid in respect of non-UK tax on loan relationship credits falling within section 49A(1)(c) which arise in an accounting period of the relevant UK company, and (c) apart from subsection (3B), Z would exceed $$R × S$where—Z is—the total amount of any reductions under subsection (1) for amounts paid in respect of that non-UK tax, lessthe total amount of any increases under subsection (3) for payments made by reference to that non-UK tax, andR and S have the same meaning as in section 49A(2).R and S have the same meaning as in section 49A(2).$ (3B) The total amount of the reductions under subsection (1) is to be reduced so that Z equals $R × S$

(3) In subsection (6), for “subsection (1)” substitute “ this section ”.

Miscellaneous

15

In Part 6 of TIOPA 2010 (tax arbitrage), in section 236 (deduction schemes involving hybrid entities) for subsection (4) substitute—

(4) Condition B is not met just because the party's profits or gains are subject to a charge under the law of a territory outside the United Kingdom (by whatever name known) which is similar to the CFC charge (see Part 9A).

16

Part 9A of TIOPA 2010 (controlled foreign companies) is amended as follows.

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

Chapter 9 (exemptions for profits from qualifying loan relationships) is amended as follows.

19

In section 371IB (loans funded out of qualifying resources) after subsection (9) insert—

(9A) Subsection (9) does not apply if the debt incurred by the member of the CFC group as mentioned in subsection (8) represents the principal on a loan made to the member to which subsection (9B) or (9D) applies. (9B) This subsection applies to a loan if the member repays it within 48 hours of the loan being made. (9C) But subsection (9B) does not apply to a loan if the repayment of the loan within the 48 hours occurs under, or is connected (directly or indirectly) with, an arrangement the main purpose, or one of the main purposes, of which is to ensure that subsection (9) does not apply because of— (a) the loan, or (b) any other debt which a member of the CFC group incurs (or is expected to incur) in the United Kingdom. (9D) This subsection applies to a loan if— (a) there is an issue of shares which meets the requirements of subsection (7)(c)(i) to (iii), (b) the loan was made before the issue of shares but with the expectation that it would be repaid by the member out of funds deriving (directly or indirectly) from the issue of shares, (c) the loan is repaid by the member out of such funds within the period of 6 months beginning with the day on which the loan was made, and (d) the loan— (i) was made by a person who was not a member of the CFC group, and (ii) was not made (wholly or partly nor directly or indirectly) out of funds or other assets provided by a member of the CFC group.

20

(1) Section 371IE (matched interest) is amended as follows.

(2) In subsection (1)(d)(ii) after “include” insert “ some or all of ”.

(3) After subsection (7) insert—

(7A) In subsection (6) the reference to the leftover profits is to those profits so far as they would be included in the relevant finance profits (see section 314A(1)(d)).

Commencement and transitional provision

21

The amendments made by this Schedule are treated as having come into force on 1 January 2013.

22

(1) Section 371CE of TIOPA 2010 (as amended by paragraph 17 above) applies for accounting periods of CFCs beginning before 20 March 2013 with the modifications set out in this paragraph. References below to subsections are to subsections of section 371CE.

Accounting periods ending before 20 March 20132For accounting periods ending before 20 March 2013, subsection (4) applies as if paragraph (b) were omitted.

Accounting periods ending on or after 20 March 20133The following sub-paragraphs apply for accounting periods ending on or after 20 March 2013.4A notice may be given under subsection (2)(b) even though the requirement of subsection (2)(a) is not met.5If a notice is given under subsection (2)(b) in a case where the requirement of subsection (2)(a) is not met, the CFC's trading finance profits are to be apportioned on a just and reasonable basis between—athe part of the accounting period falling before 20 March 2013 (“period A”), andbthe remaining part of the accounting period (“period B”).6So far as the CFC's trading finance profits are apportioned to period A, they are to be treated as non-trading finance profits if the CFC is a group treasury company in period A (and subsection (3) applies to them accordingly).7For the purpose of determining if the CFC is a group treasury company in period A, subsection (4) applies—aas if references to the accounting period were to period A, andbas if paragraph (b) were omitted.8So far as the CFC's trading finance profits are apportioned to period B, they are to be treated as non-trading finance profits if the CFC is a group treasury company in period B (and subsection (3) applies to them accordingly).9For the purpose of determining if the CFC is a group treasury company in period B, subsection (4) applies as if references to the accounting period were to period B.

SCHEDULE 48

Proceeds of Crime Act 2002

1

The Proceeds of Crime Act 2002 is amended in accordance with paragraphs 2 to 20.

2

(1) Section 289 (searches) is amended as follows.

(2) In subsections (1), (1A)(a) and (2), for “a customs officer” substitute “ an officer of Revenue and Customs ”.

(3) In subsections (1C) and (1D), for “customs officer” substitute “ officer of Revenue and Customs ”.

(4) After subsection (5)(b) insert—

(ba) are exercisable by an officer of Revenue and Customs only so far as the officer is exercising a function relating to a matter other than an excluded matter,

(5) After subsection (5) insert—

(5A) The reference in subsection (5)(ba) to an excluded matter is to a matter specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12 and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and Customs Act 2005.

3

In section 290 (prior approval for search)—

(a) in subsection (4)(a), for “a customs officer, a customs officer” substitute “ an officer of Revenue and Customs, such an officer ”, and

(b) in subsection (6), for “customs officer” substitute “ officer of Revenue and Customs ”.

4

In section 291(2) (report on exercise of powers), for “customs officer” substitute “ officer of Revenue and Customs ”.

5

In section 292 (code of practice)—

(a) in subsection (1), for “customs officers” substitute “ officers of Revenue and Customs ”, and

(b) in subsection (6), for “a customs officer” substitute “ an officer of Revenue and Customs ”.

6

(1) Section 294 (seizure of cash) is amended as follows.

(2) In subsections (1) and (2), for “A customs officer” substitute “ An officer of Revenue and Customs ”.

(3) After subsection (2) insert—

(2A) The powers conferred by this section are exercisable by an officer of Revenue and Customs only so far as the officer is exercising a function relating to a matter other than an excluded matter. (2B) But the powers may be exercised by the officer in reliance on a suspicion that relates to an excluded matter. (2C) The reference in subsection (2A) to an excluded matter is to a matter specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12 and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and Customs Act 2005.

7

In section 295(1) (detention of seized cash), for “customs officer” substitute “ officer of Revenue and Customs ”.

8

In section 296(2) (interest on cash), for “customs officer” substitute “ officer of Revenue and Customs ”.

9

In section 297(4) (release of detained cash), for “A customs officer” substitute “ An officer of Revenue and Customs ”.

10

In section 302(6) (compensation), for “a customs officer” substitute “ an officer of Revenue and Customs ”.

11

In section 351(5) (person making application to vary or discharge order)—

(a) for “a customs officer” substitute “ an officer of Revenue and Customs ”, and

(b) for “customs officer” substitute “ officer of Revenue and Customs ”.

12

(1) Section 352 (search and seizure warrants) is amended as follows.

(2) In subsection (5)—

(a) omit paragraph (a), and

(b) in paragraph (c), at the end insert “ , a confiscation investigation or a money laundering investigation ”.

(3) In subsection (7), omit “(a) or”.

13

(1) Section 353 (requirements where production order not available) is amended as follows.

(2) In subsection (10)—

(a) omit paragraph (a), and

(b) in paragraph (c), at the end insert “ , a confiscation investigation or a money laundering investigation ”.

(3) In subsection (11), omit “(a) or”.

14

(1) Section 369 (customer information orders: supplementary provisions) is amended as follows.

(2) In subsection (5)—

(a) for “a customs officer” substitute “ an officer of Revenue and Customs ”, and

(b) for “customs officer” substitute “ officer of Revenue and Customs ”.

(3) In subsection (7), for “a customs officer” substitute “ an officer of Revenue and Customs ”.

15

In section 375(4) (account monitoring orders: supplementary provisions)—

(a) for “a customs officer” substitute “ an officer of Revenue and Customs ”, and

(b) for “customs officer” substitute “ officer of Revenue and Customs ”.

16

After section 375B insert—

(375C) (1) This section applies to the powers conferred on an officer of Revenue and Customs which are exercisable in connection with— (a) a production order made or to be made in relation to a confiscation investigation or a money laundering investigation, (b) a search and seizure warrant issued or to be issued in relation to a confiscation investigation or a money laundering investigation, (c) a customer information order, and (d) an account monitoring order. (2) The powers are exercisable by the officer only so far as the officer is exercising a function relating to a matter other than an excluded matter. (3) The reference in subsection (2) to an excluded matter is to a matter specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12 and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and Customs Act 2005.

17

In section 377(1) (persons subject to code of practice), for paragraph (e) substitute—

(e) officers of Revenue and Customs;

18

In section 378 (officers)—

(a) in subsection (1), for paragraph (d) substitute—

(d) an officer of Revenue and Customs;

(b) in subsections (2)(c) and (6)(b), for “a customs officer” substitute “ an officer of Revenue and Customs ”, and

(c) an officer of Revenue and Customs;

19

After section 408B insert—

(408C) (1) This section applies to the powers conferred on an officer of Revenue and Customs which are exercisable in connection with— (a) a production order made or to be made in relation to a confiscation investigation or a money laundering investigation, (b) a search warrant issued or to be issued in relation to a confiscation investigation or a money laundering investigation, (c) a customer information order, and (d) an account monitoring order. (2) The powers are exercisable by the officer only so far as the officer is exercising a function relating to a matter other than an excluded matter. (3) The reference in subsection (2) to an excluded matter is to a matter specified in section 54(4)(b) of, or in any of paragraphs 3, 5, 7, 10, 12 and 14 to 30 of Schedule 1 to, the Commissioners for Revenue and Customs Act 2005.

20

In section 412 (interpretation), in the entry relating to the meaning of references to a “constable”, for “a customs and excise officer” substitute “ an officer of Revenue and Customs ”.

Commissioners for Revenue and Customs Act 2005

21

In Schedule 2 to the Commissioners for Revenue and Customs Act 2005 (restrictions on functions of Commissioner and officers), omit—

(a) paragraphs 13 and 13A, and

(b) the italic heading immediately preceding those paragraphs.

Relationship of provisions of 2005 Act with provisions of 2002 Act

22

Nothing in section 6 or 7 of the Commissioners for Revenue and Customs Act 2005 (initial functions) restricts the functions in connection with which officers of Revenue and Customs may exercise a power under—

(a) Chapter 3 of Part 5 of the Proceeds of Crime Act 2002 (as amended by this Schedule), or

(b) Chapters 2 and 3 of Part 8 of that Act (as so amended).

Consequential amendments

23

In section 80(1) and (3) of the Serious Crime Act 2007 (amendment of sections 352(5) and 353(10) of the Proceeds of Crime Act 2002), omit paragraph (a) and the word “and” at the end of that paragraph.

24

In Schedule 7 to the Policing and Crime Act 2009 (minor and consequential amendments), omit paragraph 116.

SCHEDULE 49

Amendments of TMA 1970

1

TMA 1970 is amended in accordance with paragraphs 2 to 6.

2

After section 59F insert—

(59FA) (1) Schedule 3ZB contains provisions about exit charge payment plans in accordance with which companies may defer payment of certain corporation tax. (2) Parts 1 and 2 of the Schedule each make provision about the circumstances in which an exit charge payment plan may be entered into, and about determining the amount of corporation tax that may be deferred— (a) see Part 1 in relation to a company which ceases to be resident in the United Kingdom, and (b) see Part 2 in relation to a company which is not resident in the United Kingdom but which carries on, or has carried on, a trade in the United Kingdom through a permanent establishment there. (3) Part 3 of the Schedule contains provision about— (a) entering into an exit charge payment plan, (b) the effect of such a plan, (c) the content of such a plan, and (d) the methods in accordance with which tax deferred under such a plan may be paid.

3

Immediately before section 59G insert— “ Managed payment plans ”.

4

(1) Section 109B (provision for securing payment by company of outstanding tax) is amended as follows.

(2) In subsection (1), at the end insert “ , subject to subsection (5A). ”

(3) In subsection (4)(b), at the end insert “ (which may include a proposal to enter into an exit charge payment plan in accordance with Schedule 3ZB). ”

(4) After subsection (5) insert—

(5A) Condition D does not apply to the extent that payment of the tax is to be secured by the company entering into an exit charge payment plan in accordance with Schedule 3ZB.

5

(1) Section 109E (liability of other persons for unpaid tax) is amended as follows.

(2) After subsection (1) insert—

(1A) The reference in subsection (1)(b) to the time when tax becomes payable is a reference to— (a) in a case where an exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the time when the tax becomes payable under the plan, and (b) in any other case, the time when the tax becomes payable in accordance with section 59D or 59E.

(3) In subsection (2), for “the time when the amount of the tax is finally determined” substitute “ the relevant time ”.

(4) After subsection (2) insert—

(2A) In subsection (2) the “relevant time” means— (a) in a case where an exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the later of— (i) the first day after the period of 12 months beginning immediately after the migration accounting period (as defined in Part 1 or 2 of Schedule 3ZB, as the case may be), and (ii) the date on which the tax is payable under the plan, and (b) in any other case, the time when the amount of the tax is finally determined.

6

After Schedule 3ZA insert—

SCHEDULE 3ZB (1) (1) This Part of this Schedule and Part 3 of this Schedule apply where an eligible company— (a) ceases to be resident in the United Kingdom, (b) on ceasing to be so resident, becomes resident in another EEA state, and (c) is liable to pay qualifying corporation tax in respect of the migration accounting period. (2) The company may defer payment of some or all of the qualifying corporation tax if it enters into an exit charge payment plan in respect of it in accordance with this Schedule. (3) The company may enter into an exit charge payment plan only if conditions A to C are met. (4) Condition A is that before the end of the period of 9 months beginning immediately after the migration accounting period— (a) an application to enter into the exit charge payment plan is made to Her Majesty's Revenue and Customs, and (b) the application contains details of all the matters which are required by Part 3 of this Schedule to be specified in the plan. (5) Condition B is that on ceasing to be resident in the United Kingdom, the company carries on a business in an EEA state. (6) Condition C is that, on becoming resident in the other EEA state, the company is not treated as resident in a territory outside the European Economic Area for the purposes of any double taxation arrangements. (7) In this paragraph— - “double taxation arrangements” means arrangements which are made by two or more territories with a view to affording relief from double taxation and which have effect at the time when the company ceases to be resident in the United Kingdom; - “eligible company” means a company that has a right to freedom of establishment protected by Article 49 of the Treaty on the functioning of the European Union or established by Article 31 of the Agreement on the European Economic Area. (8) In this Part of this Schedule— (a) references to the migration accounting period are to— (i) in a case where an accounting period comes to an end on the company ceasing to be resident in the United Kingdom, that accounting period, and (ii) in a case not falling within sub-paragraph (i), the accounting period during which the company ceases to be resident in the United Kingdom, (b) references to a Part 1 company are to a company in relation to which this Part of this Schedule applies, and (c) references to Part 3 of this Schedule are to Part 3 of this Schedule as it applies to a Part 1 company. (2) (1) The company is liable to pay qualifying corporation tax in respect of the migration accounting period if CT1 is greater than CT2 where— - CT1 is the corporation tax which the company is liable to pay for the accounting period, and - CT2 is the corporation tax which the company would be liable to pay for the accounting period if any income, profits, gains, losses or debits arising only by virtue of the exit charge provisions were ignored, (CT2 will be zero if the company would not be liable to pay any corporation tax for the period). (2) The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2. (3) “Exit charge provisions” means— (a) section 185 of the 1992 Act, (b) section 187(4) of that Act, where that subsection applies by virtue of section 187(4)(c), (c) section 162 of CTA 2009, where that section applies by virtue of section 41(2)(b) of that Act, (d) section 333 of that Act, (e) section 609 of that Act, (f) section 859 of that Act, where that section applies by virtue of section 859(2)(a), and (g) section 862 of that Act, where that section applies by virtue of section 862(1)(c). (4) References in this Part of this Schedule and Part 3 of this Schedule to qualifying corporation tax are to be read in accordance with this paragraph. (3) (1) This paragraph applies for the purposes of this Part of this Schedule and Part 3 of this Schedule. (2) “Exit charge assets” and “exit charge liabilities” means assets or liabilities (as the case may be) in respect of which income, profits or gains arise in the migration accounting period by virtue of the exit charge provisions, and in particular— (a) “TCGA or trading stock exit charge assets” means those exit charge assets, other than pre-FA 2002 intangible fixed assets, in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(a), (b) or (c), (b) “financial exit charge assets or liabilities” means those exit charge assets or liabilities in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(d) or (e), (c) “intangible exit charge assets” means— (i) those exit charge assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(f) or (g), and (ii) those exit charge assets which are pre-FA 2002 intangible fixed assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(a) or (b). (3) In sub-paragraph (2)— (a) “exit charge provisions” has the meaning given in paragraph 2(3); (b) “pre-FA 2002 intangible fixed asset” means an intangible fixed asset which is a pre-FA 2002 asset (as defined in section 881 of CTA 2009). (4) (1) This Part of this Schedule and Part 3 of this Schedule apply where— (a) at any time during an accounting period (“the migration accounting period”) an eligible company which is not resident in the United Kingdom carries on a trade in the United Kingdom through a permanent establishment there, (b) one or more PE qualifying events occurs in respect of any assets or liabilities of the company as mentioned in sub-paragraph (4), and (c) the company is liable to pay qualifying corporation tax in respect of the migration accounting period. (2) The company may defer payment of some or all of the qualifying corporation tax if it enters into an exit charge payment plan in respect of it in accordance with this Schedule. (3) The company may enter into an exit charge payment plan only if before the end of the period of 9 months beginning immediately after the migration accounting period— (a) an application to enter into the exit charge payment plan is made to Her Majesty's Revenue and Customs, and (b) the application contains details of all the matters which are required by Part 3 of this Schedule to be specified in the plan. (4) For the purposes of this Part of this Schedule, a “PE qualifying event” occurs in respect of an asset or liability of a company if— (a) an event occurs which triggers— (i) a deemed disposal and reacquisition of the asset or liability under the exit charge provision mentioned in paragraph 5(3)(a), (c), (d) or (e), or (ii) a valuation of the asset under the exit charge provision mentioned in paragraph 5(3)(b), (b) the event— (i) occurs during the migration accounting period, or (ii) causes the migration accounting period to come to an end, and (c) at the time of the event, the company is not treated as resident in a territory outside the European Economic Area for the purposes of any double taxation arrangements. (5) In this Part of this Schedule, references to a PE qualifying asset or liability are to an asset or liability in respect of which a PE qualifying event occurs. (6) In this paragraph “double taxation arrangements” and “eligible company” have the meanings given in paragraph 1(7). (7) In this Part of this Schedule— (a) references to the migration accounting period are to be read in accordance with this paragraph; (b) references to a Part 2 company are to a company in relation to which this Part of this Schedule applies, (c) references to Part 3 of this Schedule are to Part 3 of this Schedule as it applies to a Part 2 company, and (d) “permanent establishment”, in relation to a company, is to be read in accordance with Chapter 2 of Part 24 of CTA 2010. (5) (1) The company is liable to pay qualifying corporation tax in respect of the migration accounting period if CT1 is greater than CT2 where— - CT1 is the corporation tax which the company is liable to pay for the accounting period, and - CT2 is the corporation tax which the company would be liable to pay for the accounting period if any income, profits, gains, losses or debits arising as a result of any PE qualifying events, and arising only by virtue of the exit charge provisions, were ignored, (CT2 will be zero if the company would not be liable to pay any corporation tax for the period). (2) The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2. (3) Exit charge provisions means— (a) section 25 of the 1992 Act, (b) section 162 of CTA 2009, where that section applies by virtue of section 41(2)(b) of that Act, (c) section 334 of that Act, (d) section 610 of that Act, and (e) section 859 of that Act, where that section applies by virtue of section 859(2)(b). (4) References in this Part of this Schedule and Part 3 of this Schedule to qualifying corporation tax are to be read in accordance with this paragraph. (6) (1) This paragraph applies for the purposes of this Part of this Schedule and Part 3 of this Schedule. (2) “Exit charge assets” and “exit charge liabilities” means any PE qualifying assets or liabilities (as the case may be) in respect of which income, profits or gains arise in the migration accounting period by virtue of the exit charge provisions, and in particular— (a) “TCGA or trading stock exit charge assets” means those exit charge assets, other than pre-FA 2002 intangible fixed assets, in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(a) or (b); (b) “financial exit charge assets or liabilities” means those exit charge assets or liabilities in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(c) or (d); (c) “intangible exit charge assets” means— (i) those exit charge assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(e), and (ii) those exit charge assets which are pre-FA 2002 intangible fixed assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(a). (3) In sub-paragraph (2)— (a) “exit charge provisions” has the meaning given in paragraph 5(3); (b) “pre-FA 2002 intangible fixed asset” means an intangible fixed asset which is a pre-FA 2002 asset (as defined in section 881 of CTA 2009). (7) (1) As to when this Part of this Schedule applies, see— (a) Part 1 of this Schedule (companies ceasing to be resident in the United Kingdom), and (b) Part 2 of this Schedule (companies with permanent establishments in the United Kingdom). (2) In this Part of this Schedule, as it applies to a company in relation to which Part 1 of this Schedule applies, terms and expressions which are used in this Part and in that Part have the same meanings in this Part as in that Part. (3) In this Part of this Schedule, as it applies to a company in relation to which Part 2 of this Schedule applies, terms and expressions which are used in this Part and in that Part have the same meanings in this Part as in that Part. (8) (1) A Part 1 company or a Part 2 company enters into an exit charge payment plan in respect of qualifying corporation tax in accordance with this Schedule if— (a) the company agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the tax in accordance with the standard instalment method (see paragraph 13) or the realisation method (see paragraphs 14 to 17) or a combination of the two methods, (b) the company agrees to pay interest on the tax in accordance with paragraph 9(3), and (c) the plan meets the requirements set out in paragraphs 10 to 12 as to the matters that must be specified in it. (2) The exit charge payment plan may, in the circumstances mentioned in sub-paragraph (3), contain appropriate provision regarding security for Her Majesty's Revenue and Customs in respect of the deferred payment of the tax. (3) Those circumstances are where an officer of Her Majesty's Revenue and Customs considers that agreeing to accept payment of qualifying corporation tax in accordance with the plan would present a serious risk as to collection of the tax in the absence of provision regarding security in respect of that tax. (4) An exit charge payment plan is void if any information furnished by the company in connection with the plan does not fully and accurately disclose all facts and considerations material to the decision of the officer of Revenue and Customs to accept payment of qualifying corporation tax in accordance with the plan. (9) (1) This paragraph applies where an exit charge payment plan is entered into by a company in respect of qualifying corporation tax in accordance with this Schedule. (2) As regards when the tax is payable— (a) the plan does not prevent the tax becoming due and payable under section 59D or 59E, but (b) the Commissioners for Her Majesty's Revenue and Customs— (i) may not seek payment of the tax otherwise than in accordance with the plan; (ii) may make repayments in respect of any amount of the tax paid, or any amount paid on account of the tax, before the plan is entered into. (3) As regards interest— (a) the tax carries interest in accordance with Part 9 as if the plan had not been entered into, and (b) each time a payment is made under the plan, it is to be paid together with any interest payable on it. (4) As regards penalties, the company will be liable to penalties for late payment of the tax only if it fails to make payments in accordance with the plan (see item 6ZA of the Table at the end of paragraph 1 of Schedule 56 to the Finance Act 2009). (5) Qualifying corporation tax payable in accordance with an exit charge payment plan which is for the time being unpaid may be paid at any time before it becomes payable under the plan together with interest payable on it to the date of payment. (10) (1) An exit charge payment plan entered into by a Part 1 company must specify— (a) the date on which the company ceased to be resident in the United Kingdom, and (b) the EEA state in which the company has become resident. (2) An exit charge payment plan entered into by a Part 2 company must specify— (a) the EEA state in which the company is resident, and (b) if the company has ceased to carry on a trade in the United Kingdom through a permanent establishment there, the date on which it ceased to do so. (3) In either case an exit charge payment plan entered into by a company must also specify— (a) the amount of qualifying corporation tax which, in the company's opinion, is payable by it in respect of the migration accounting period, (b) the amount of that qualifying corporation tax which the company wishes to defer paying under the exit charge payment plan (“ECPP tax”), and (c) whether the ECPP tax is to be paid in accordance with— (i) the standard instalment method (see paragraph 13), (ii) the realisation method (see paragraphs 14 to 17), or (iii) a combination of the two methods. (4) If the ECPP tax is to be paid in accordance with a combination of the two methods, the exit charge payment plan must also specify— (a) in the case of each of the company's exit charge assets or liabilities (see paragraphs 3(2) or 6(2), as the case may be), the method in accordance with which the amount of ECPP tax attributable to the asset or liability (see sub-paragraph (6)) is to be paid, and (b) the amount of the ECPP tax specified under sub-paragraph (3)(b) that is to be paid in accordance with each method. (5) But an exit charge payment plan may specify that any ECPP tax is to be paid in accordance with the standard instalment method only if— (a) in the case of a plan entered into by a Part 1 company, the company's ceasing to be resident in the United Kingdom is not part of arrangements the main purpose of which, or one of the main purposes of which, is to defer the payment of any qualifying corporation tax payable by it; (b) in the case of a plan entered into by a Part 2 company, none of the PE qualifying events occurring during the migration accounting period, or bringing that period to an end, is part of arrangements the main purpose of which, or one of the main purposes of which, is to defer the payment of any qualifying corporation tax payable by it. (6) The amount of ECPP tax attributable to each exit charge asset or liability is— $$A B × T$where—“A” is the income, profits or gains arising in respect of the asset or liability in the migration accounting period by virtue of the relevant exit charge provision only,“B” is the total income, profits or gains arising in respect of all the exit charge assets and liabilities in the migration accounting period by virtue of the exit charge provisions only, and“T” is the ECPP tax.$ (11) (1) This paragraph applies if, under an exit charge payment plan, the amount of ECPP tax attributable to any exit charge asset or liability is to be paid in accordance with the realisation method. (2) The plan must specify— (a) each such asset or liability (so far as not already specified under paragraph 10(4)(a)), and (b) the amount of ECPP tax attributable to the asset or liability, calculated in accordance with paragraph 10(6). (3) The plan must also include requirements as to the ongoing provision of information by the company to Her Majesty's Revenue and Customs in relation to the asset or liability. (12) (1) This paragraph applies if, under an exit charge payment plan, the amount of ECPP tax attributable to an exit charge asset or liability is to be paid in accordance with the realisation method. (2) The plan must specify any additional information required by this paragraph in relation to the asset or liability. (3) Sub-paragraph (4) applies in the case of a financial exit charge asset or liability if, immediately after the migration accounting period, the remaining term of the loan relationship or derivative contract in question is less than 10 years. (4) The plan must specify, in relation to the asset or liability, how many years of the term of the loan relationship or derivative contract remain (rounded up to the nearest whole year). (5) Sub-paragraph (6) applies in the case of an intangible exit charge asset if, immediately after the migration accounting period, the remaining useful life of the asset for accountancy purposes is less than 10 years. (6) The plan must specify, in relation to the asset, how many years of the useful life of the asset remain (rounded up to the nearest whole year). (13) (1) This paragraph applies if, under an exit charge payment plan, some or all of the ECPP tax is to be paid in accordance with the standard instalment method. (2) The amount of the ECPP tax that is to be paid in accordance with the standard instalment method is payable in 6 instalments of equal amounts as follows— (a) the first instalment is due on the first day after the period of 9 months beginning immediately after the migration accounting period, and (b) the other 5 instalments are due one on each of the first 5 anniversaries of that day. (3) But if a relevant event occurs, the outstanding balance of the ECPP tax that is payable in accordance with the standard instalment method is payable on the date on which the next instalment of that tax would otherwise have been due under the plan. (4) A “relevant event” means— (a) the company becoming insolvent or entering into administration, (b) the appointment of a liquidator, (c) any event under the law of an EEA state outside the United Kingdom corresponding to an event specified in paragraph (a) or (b), or (d) the company ceasing to be resident in an EEA state and, on so ceasing, not becoming resident in any other EEA state. (14) (1) This paragraph applies if— (a) under an exit charge payment plan, the amount of ECPP tax attributable to an exit charge asset is to be paid in accordance with the realisation method, and (b) the asset is a TCGA or trading stock exit charge asset (see paragraph 3(2)(a) or 6(2)(a), as the case may be). (2) The amount of ECPP tax attributable to the asset under paragraph 10(6) is payable in relation to whichever is the first to occur of the following events— (a) the disposal of that asset at any time after— (i) the company ceases to be resident in the United Kingdom (in the case of a Part 1 company), or (ii) the occurrence of the PE qualifying event in respect of the asset (in the case of a Part 2 company), (b) the tenth anniversary of the end of the migration accounting period, or (c) a relevant event (as defined in paragraph 13(4)). (3) The date on which the amount is payable is— (a) in a case falling within sub-paragraph (2)(a) or (b), the date of the event referred to, and (b) in a case falling within sub-paragraph (2)(c), the relevant date or, if that date has already passed, the next anniversary of that date. (4) In sub-paragraph (3)(b), “relevant date” means the first day after the period of 9 months beginning immediately after the migration accounting period. (5) Section 21(2) of the 1992 Act (part disposals of assets) applies for the purposes of sub-paragraph (2)(a) as it applies for the purposes of that Act. (6) Where part of an asset is disposed of at any time after the event mentioned in sub-paragraph (2)(a), the amount of ECPP tax attributable to the asset under paragraph 10(6) is to be apportioned on a just and reasonable basis for the purpose of applying this paragraph to the part of the asset disposed of and the part which remains undisposed of. (15) (1) This paragraph applies if— (a) under an exit charge payment plan, the ECPP tax attributable to an exit charge asset or liability is to be paid in accordance with the realisation method, and (b) the asset or liability is— (i) a financial exit charge asset or liability, or (ii) an intangible exit charge asset, (see paragraph 3(2)(b) and (c) or 6(2)(b) and (c), as the case may be). (2) The amount of ECPP tax attributable to any such asset or liability under paragraph 10(6) is payable in a number of annual instalments of equal amounts. (3) The number of annual instalments is— (a) in a case where a number of years is specified in the plan in relation to the asset or liability by virtue of paragraph 12(4) or (6), that number, and (b) otherwise, 10. (4) The instalments are due as follows— (a) the first instalment is due on the first day after the period of 9 months beginning immediately after the migration accounting period, and (b) the other instalments are due one on each of the subsequent anniversaries of that day (until they are all paid). (5) But see paragraphs 16 and 17 for circumstances in which all or part of the outstanding balance of the amount of ECPP tax attributable to the asset or liability under paragraph 10(6) (“the outstanding balance in respect of the asset or liability”) becomes payable. (16) (1) This paragraph applies where the amount of ECPP tax attributable to an asset or liability under paragraph 10(6) is payable in instalments in accordance with paragraph 15. (2) All of the outstanding balance in respect of the asset or liability (as defined in paragraph 15(5)) is payable in accordance with sub-paragraph (3) if— (a) a trigger event occurs in relation to the asset or liability (see sub-paragraph (4)), or (b) a relevant event occurs (as defined in paragraph 13(4)), before the last instalment is payable in accordance with paragraph 15. (3) The outstanding balance is payable— (a) in a case falling within sub-paragraph (2)(a), on the date of the trigger event, and (b) in a case falling within sub-paragraph (2)(b), on the date on which the next instalment would otherwise have been due under the plan. (4) For the purposes of this paragraph, a trigger event occurs in relation to an asset or liability if— (a) in the case of a financial exit charge asset or liability, the company ceases to be party to the loan relationship or derivative contract in question, or (b) in the case of an intangible fixed asset, the asset is disposed of. (17) (1) This paragraph applies where— (a) the amount of ECPP tax attributable to an asset or liability under paragraph 10(6) is payable in instalments in accordance with paragraph 15, and (b) a partial trigger event occurs in relation to the asset or liability (see sub-paragraph (4)) before the last instalment is payable. (2) On the occurrence of that event, part of the outstanding balance in respect of the asset or liability (as defined in paragraph 15(5)) is payable. (3) The part payable under sub-paragraph (2) is so much of the outstanding balance in respect of the asset or liability as is attributable to the transaction mentioned in sub-paragraph (4)(a) or (b). (4) For the purposes of sub-paragraph (2), a partial trigger event occurs in relation to an asset or liability if— (a) in the case of a financial exit charge asset or liability— (i) there is a disposal of rights or liabilities under the loan relationship or derivative contract in question which amounts to a related transaction (as defined in section 304 or 596 of CTA 2009 as the case may be), but (ii) the transaction does not result in the company ceasing to be party to the relationship or contract, and (b) in the case of an intangible exit charge asset, there is a transaction which— (i) results in a reduction in the accounting value of the asset, but (ii) does not result in the asset ceasing to be recognised in the company's balance sheet. (5) Where part of the outstanding balance in respect of an asset or liability is paid in accordance with sub-paragraphs (2) and (3), the remaining instalments due under paragraph 15 in respect of the asset or liability continue to be payable so far as they relate to the remaining asset or liability (subject to paragraph 16 and this paragraph). (6) In sub-paragraph (5), the “remaining asset or liability” means— (a) in a case within sub-paragraph (4)(a), the loan relationship or derivative contract as it exists following the related transaction, (b) in a case within sub-paragraph (4)(b), the asset as it continues to be recognised on the balance sheet following the transaction mentioned in that sub-paragraph. (7) For the purposes of sub-paragraphs (3) and (5)— (a) the outstanding balance in respect of the asset or liability, and (b) the remaining instalments due under paragraph 15 in respect of the asset or liability, are to be apportioned on a just and reasonable basis between the transaction mentioned in sub-paragraph (4)(a) or (b) and the remaining asset or liability. (8) In relation to an intangible exit charge asset that has no balance sheet value (or no longer has a balance sheet value), sub-paragraph (4)(b) applies as if, immediately before the transaction, it did have a balance sheet value.

Amendments of FA 2009

7

In Schedule 56 to FA 2009 (penalty for failure to make payments on time), in the Table at the end of paragraph 1, after entry 6 insert—

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