CG42360 - Migration of companies: departures from UK: ceasing to be resident in UK

If a company ceases to be resident in the UK certain exit charges and restrictions to roll-over relief will apply. See CG42370 and CG42380 for guidance.

When a company ceases to be resident in the UK part way through a year of assessment an accounting period ends and another one begins, CTA09/S9 and CTA09/S10. For the accounting period when the company is resident it is within the charge to Corporation Tax. Any gains arising in that part of the year of assessment will therefore be assessed to Corporation Tax on capital gains in accordance with CTA09/S2.

For the part of the year of assessment when the company is not resident in the UK

• if the company is carrying on a trade in the UK through a permanent establishment it is within the charge to Corporation Tax in respect of gains on assets used for the purposes of the permenant establishment, see TCGA92/S2B(3) and TCGA92/S10B.
• It will be chargeable on disposals of UK land or assets that derive 75% or more of their value from UK land, see TCGA92/2B(4)

TCGA92/S1(2) makes clear that gains of companies are chargeable to corporation tax and not CGT. However, up to and including the tax year 2012-13, a company that left the UK would be liable to CGT on gains arising in the part of the year of assessment after migration.