SCHEDULES
C1SCHEDULE 36Agreement between UK and Switzerland
PART 2The past
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 (Cr).
Sch. 36 applied (with modifications) (19.4.2013) by The Small Charitable Donations Regulations 2013 (S.I. 2013/938), regs. 1, 6