Finance Act 2012

Effect if P eligible for clearance

6 (1) This paragraph sets out the effect of the Part 2 certificate if P is eligible for clearance.

(2) P ceases to be liable to tax on qualifying amounts.

(3) Sub-paragraph (2) does not apply to a qualifying amount if—

(a) the amount was held in the United Kingdom,

(b) at some point during the period beginning with 6 October 2011 and ending immediately before the start date, it ceased to be held in the United Kingdom, and

(c) after that point (but before the start date) it began to be held in Switzerland.

(4) Instead, such part of the one-off payment as is attributable (on a just and reasonable basis) to the qualifying amount is to be treated as if it were a credit allowable against the tax due from P taking account of that amount.

(5) The meaning of tax due “taking account of” an amount is explained in Part 5 of this Schedule.

(6) The form in which a qualifying amount was held in the United Kingdom is irrelevant (so references in sub-paragraph (3) to the amount include an asset representing the amount).

(7) The total qualifying amounts to which sub-paragraphs (2) and (4) can apply as a result of the Part 2 certificate is limited to X.

(8) If the total exceeds X, the particular qualifying amounts to which those sub-paragraphs apply are assumed to be those that would produce the most beneficial outcome for P.

(9) X is—

(a) in a case falling within Article 9(3), the value of the omitted taxable base by reference to which the one-off payment was calculated, and

(b) in any other case, the value shown in the Part 2 certificate as the value of the relevant capital (C_r).