Section 609 Company ceasing to be UK resident

United Kingdom

(1)

If a company ceases to be UK resident, this Part applies as if—

(a)

immediately before so ceasing the company had assigned the rights and liabilities under its derivative contracts for consideration of an amount equal to their fair value at that time, and

(b)

it had immediately reacquired them for consideration of the same amount.

(2)

Subsection (1) does not apply in relation to a derivative contract so far as immediately after the company ceases to be UK resident its rights and liabilities under the contract are held or owedF1—

(a)

for the purposes of a permanent establishment of the company in the United KingdomF2,

(b)

for the purposes of the company's trade of dealing in or developing UK land,

(c)

for the purposes of the company's UK property business, or

(d)

for the purposes of enabling the company to generate other UK property income (within the meaning given by section 5(6)).

(3)

Subsection (1) does not apply if—

(a)

the conditions in section 630(1)(a) and (b) are met in relation to the company (transferee leaving group after replacing transferor as party to derivative contract), and

(b)

it ceases to be UK resident at the same time as it ceases to be a member of the relevant group.

(4)

In subsection (3) “the relevant group” has the meaning given by section 630(4).

Annotations

Textual amendments

F1: Words in s. 609(2) renumbered as s. 609(2)(a) (6.4.2020) by virtue of Finance Act 2019 (c. 1), Sch. 5 paras. 19(a), 35 (with Sch. 5 para. 36)
F2: S. 609(2)(b)-(d) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 19(b), 35 (with Sch. 5 para. 36)

Notes on Part 7

Modifications

C1: Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
C2: Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
C3: Pt. 7 modified by 2007 c. 3, s. 809FZZ(8) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))
C4: Pt. 7 modified (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by 2005 c. 5, Sch. A1 para. 35(6) (as inserted by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 1)

Notes on Miscellaneous

Textual amendments

F1: Pt. 7 Ch. 3 cross-heading inserted (with effect in accordance with Sch. 21 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 21 para. 8