Paragraph 7 Whether company is “non-resident” in relation to a chargeable transactionF1

(1)

For the purposes of this Schedule a company is “non-resident” in relation to a chargeable transaction if either of the following conditions is met.

(2)

The first condition is that, on the effective date of the chargeable transaction, the company is not UK resident for the purposes of the Corporation Tax Acts (see Chapter 3 of Part 2 of CTA 2009).

(3)

The second condition is that, on the effective date of the chargeable transaction, the company (though UK resident for the purposes of the Corporation Tax Acts)—

(a)

is a close company (see paragraph 8),

(b)

meets the non-UK control test in relation to the transaction (see paragraphs 9 and 10), and

(c)

is not an excluded company (see paragraph 11).

(4)

This paragraph is subject to—

(a)

paragraph 15 (co-ownership F2... contractual schemes);

(b)

paragraph 16 (alternative property finance).

Annotations

Textual amendments

F1: Sch. 9A inserted (with effect in accordance with Sch. 16 para. 6 of the amending Act) by Finance Act 2021 (c. 26), Sch. 16 para. 5
F2: Word in Sch. 9A para. 7(4)(a) omitted (19.3.2025) by virtue of The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 57(7) (with reg. 63)