Finance Act 1988

130 Provisions for securing payment by company of outstanding tax.U.K.

(1)The requirements of subsections (2) and (3) below must be satisfied before a company ceases to be resident in the United Kingdom otherwise than in pursuance of a Treasury consent.

(2)The requirements of this subsection are satisfied if the company gives to the Board—

(a)notice of its intention to cease to be resident in the United Kingdom, specifying the time (“the relevant time”) when it intends so to cease;

(b)a statement of the amount which, in its opinion, is the amount of the tax which is or will be payable by it in respect of periods beginning before that time; and

(c)particulars of the arrangements which it proposes to make for securing the payment of that tax.

(3)The requirements of this subsection are satisfied if—

(a)arrangements are made by the company for securing the payment of the tax which is or will be payable by it in respect of periods beginning before the relevant time; and

(b)those arrangements as so made are approved by the Board for the purposes of this subsection.

(4)If any question arises as to the amount which should be regarded for the purposes of subsection (3) above as the amount of the tax which is or will be payable by the company in respect of periods beginning before the relevant time, that question shall be referred to the Special Commissioners, whose decision shall be final.

(5)If any information furnished by the company for the purpose of securing the approval of the Board under subsection (3) above does not fully and accurately disclose all facts and considerations material for the decision of the Board under that subsection, any resulting approval of the Board shall be void.

(6)In this section “Treasury consent” means a consent under section 765 of the Taxes Act 1988 (restrictions on the migration etc. of companies) given for the purposes of subsection (1)(a) of that section.

(7)In this section and sections 131 and 132 below any reference to the tax payable by a company includes a reference to—

(a)any amount of tax which it is liable to pay under regulations made under section [F1684 of the Income Tax (Earnings and Pensions) Act 2003] (PAYE);

(b)any income tax which it is liable to pay in respect of payments [F2within section 946 of the Income Tax Act 2007 (collection of tax: deposit-takers, building societies and certain companies)] ;

(c)any amount representing income tax which it is liable to pay under—

F3(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)section [F4966 of the Income Tax Act 2007] (entertainers and sportsmen);

(d)any amount which it is liable to pay under [F5section 61 of the Finance Act 2004] (sub-contractors in the construction industry); and

(e)any amount which it is liable to pay under paragraph 4 of Schedule 15 to M1Finance Act 1973 (territorial extension of charge of tax).

(8)In this section and section 132 below any reference to the tax payable by a company in respect of periods beginning before any particular time includes a reference to any interest on the tax so payable, or on tax paid by it in respect of such periods, which it is liable to pay in respect of periods beginning before or after that time.

(9)In this section and sections 131 and 132 below any reference to a provision of the Taxes Act 1988 shall be construed, in relation to any time before 6th April 1988, as a reference to the corresponding enactment repealed by that Act.

[F6(9A)In this section any reference to a provision of the Income Tax (Earnings and Pensions) Act 2003 or the Income Tax Act 2007 shall be construed, in relation to any time at which a corresponding provision of the Taxes Act 1988 or an enactment repealed by that Act had effect, as a reference to that corresponding provision.]

(10)This section and sections 131 and 132 below shall be deemed to have come into force on 15th March 1988.