Assets subject to EU exit charges

184JAsset subject to EU exit charge on becoming chargeable asset

1

This section applies if—

a

an asset becomes a chargeable asset in relation to a company by reason of an event specified in subsection (2), and

b

on the occurrence of that event the company becomes subject to an EU exit charge in relation to the asset.

2

The events are—

a

the company becoming resident in the United Kingdom, and

b

in the case of a company that is not resident in the United Kingdom, the asset beginning to be held for the purposes of a trade carried on by the company in the United Kingdom through a permanent establishment.

3

The company is to be treated for the purposes of this Act as if it had acquired the asset for its market value at the time it became a chargeable asset in relation to the company.

4

For the purposes of this section an asset is a “chargeable asset” in relation to a company at any time if any gain on its disposal by the company at that time would be chargeable to corporation tax.

5

“EU exit charge” means a charge to tax under the law of a member State in accordance with Article 5(1) of Directive (EU) 2016/1164 of the European Parliament and of the Council of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market.

3

But subsection (2)(b) is subject to section 863A.

863AAsset becoming chargeable intangible asset: EU exit charge

1

This section applies if—

a

an asset becomes a chargeable intangible asset in relation to a company by reason of an event specified in section 863(1)(a) or (b), and

b

on the occurrence of that event the company becomes subject to an EU exit charge in respect of the asset.

2

This Part applies as if the company had acquired the asset for its market value at the time it became a chargeable intangible asset in relation to the company.

3

“EU exit charge” means a charge to tax under the law of a member State in accordance with Article 5(1) of Directive (EU) 2016/1164 of the European Parliament and of the Council of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market.