Paragraph 3 F1

United Kingdom

(1)

This paragraph applies where the relevant trustees of a settlement are liable to pay an exit charge for a tax year by virtue of section 80 of the 1992 Act (charge on ceasing to be resident in the UK).

(2)

The relevant trustees are eligible to enter into a CGT exit charge payment plan in relation to any one or more of the assets to which the exit charge relates if—

(a)

at the time the trustees of the settlement ceased to be resident in the United Kingdom for the purposes of that section, they had a right to freedom of establishment,

(b)

immediately before that time, the trustees of the settlement used the asset or assets for an economically significant activity carried on in the United Kingdom, and

(c)

immediately after that time, those trustees—

(i)

become resident in another EEA state for the purposes of the 1992 Act, and

(ii)

use the asset or assets for an economically significant activity carried on there.

Annotations

Textual amendments

F1: Sch. 3ZAA inserted (with effect in accordance with Sch. 7 para. 7 of the amending Act) by Finance Act 2019 (c. 1), Sch. 7 para. 2