Summary
1.Section 229 and Schedule 49 introduce two options for companies to defer payment for UK corporation tax where it arises under provisions taxing unrealised profits and gains when the company ceases to be resident in the United Kingdom or a non-resident company ceases to carry on all or part of its business in the UK. Exit charge payment plans are available to companies incorporated in the European Union or European Economic Area (EU/EEA), including UK companies, which transfer their business and their place of residence for tax purposes to another Member State. Deferred tax payments will be subject to interest under the usual rules. The changes ensure that UK rules taxing such profits and gains are compatible with EU law.
