SCHEDULES

SCHEDULE 3Tax

Residence for tax purposes

3

1

Sub-paragraph (2) shall apply if—

a

the exempt period ends, and

b

at that time the Corporation would be regarded for the purposes of the [1988 c. 39.] Taxes Acts as resident in the United Kingdom by virtue only of section 66 of the Finance Act 1988 (company incorporated in UK).

2

That section shall not apply in relation to the Corporation at any time during the period beginning with the end of the exempt period and ending in accordance with sub-paragraph (3).

3

The period shall end—

a

with the seventh anniversary of the final day of the exempt period, or

b

if earlier, at any time when the Corporation comes to be regarded for the purposes of the Taxes Acts as resident in the United Kingdom (otherwise than by virtue of section 66).

4

The following provisions shall not apply where the [1992 c. 12.] Corporation ceases to be resident in the United Kingdom by virtue of sub-paragraph (2)—

a

section 179 of the Taxation of Chargeable Gains Act 1992 (company ceasing to be member of group);

b

section 185 of that Act (deemed disposal of assets when company ceases to be resident in UK).

5

In this paragraph “the Taxes Acts” has the same meaning as in the [1970 c. 9.] Taxes Management Act 1970.