Part 4: Income tax, corporation tax and capital gains tax Section 38: Restitution interest payments Details of the section Chapter 3
Chapter 3 contains sections 357YM and 357YN which deal with situations where the right to the restitution interest is no longer within the scope of Corporation Tax.
	Section 357M provides that if the right to the restitution interest is transferred by a person within the scope of corporation tax to a person not within the scope, and the purpose of the transfer was to secure a tax advantage for any person, any restitution interest which subsequently arises is deemed to be that of the transferor.
	Section 357YN sets out that if a UK resident company had accrued rights to the entitlement to restitution interest at the time it changed its residence to become non-UK resident and the main purpose for the change in residence was to secure a tax advantage for any person, then the company is to be treated as a UK resident company in relation to the amount of restitution interest which is attributable to the accrued rights. Additionally, in these circumstances, the company is treated as if it had not made a deemed disposed of the right to receive restitution interest under section 185 and 187 TCGA at the time it changed its residence.