Introduction Details of the Section
2.Section 229 outlines the scope of the changes introduced by this Schedule.
3.A company may apply for deferred payment of that part of its corporation tax liability payable in respect of specified unrealised chargeable gains or income profits under an exit charge payment plan. An exit charge is the corporation tax on profits or gains which a company is deemed to have realised when it ceases to be UK resident, or when a non-resident company ceases to hold assets for the purposes of a trade carried on in the UK through a permanent establishment (‘PE’). The Section specifies that the relevant tax provisions are:
	Sections 25, 185 and 187(4) of the Taxation of Chargeable Gains Act 1992 (‘TCGA’), which deem a company to have disposed of all its assets at the time it ceases to be UK resident, when assets held for the purposes of a trade carried on by a UK PE cease to be situated in the UK or when a UK PE it ceases to use or hold assets for the purposes of a trade carried on by a UK permanent establishment, and tax any net chargeable gain.
	Sections 333, 334 609 and 610 of the Corporation Tax Act 2009 (‘CTA 09’) which deem a company to have disposed of all of its loan relationships and derivative contracts at their fair value immediately before it either ceases to be UK resident, or ceases to hold assets for the purposes of a trade carried on a UK PE.
	Sections 859 and 862 of CTA 09 which deem a company to have realised its intangible fixed assets for market value at the time that it ceases to be UK resident, or ceases to hold assets for the purposes of a trade carried on a UK PE, and taxes any resulting profit.
	Section 162[164(4)] CTA 2009 which requires a company to revalue its trading stock from the lower of cost or market value to the amount which it would realise if sold in the open market when it ceases to trade in the UKPE UK resident.