Section 109E: Liability of other persons for unpaid tax, Taxes Management Act 1970

This section applies if—

a company ("the migrating company") ceases to be resident in the United Kingdom at any time, and

any tax which is payable by the company in respect of periods beginning before that time is not paid within 6 months from the time when it becomes payable.

The reference in subsection (1)(b) to the time when tax becomes payable is a reference to—

in a case where a CT exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the time when the tax becomes payable under the plan, and

in any other case, the time when the tax becomes payable in accordance with section 59D or 59E.

The Commissioners for Her Majesty's Revenue and Customs may, at any time before the end of the period of 3 years beginning with the relevant time, serve on any person within subsection (3) a notice—

stating particulars of the tax payable, the amount remaining unpaid and the date when it became payable, and

requiring that person to pay that amount within 30 days of the service of the notice.

In subsection (2) the "relevant time" means—

in a case where a CT exit charge payment plan has been entered into in accordance with Schedule 3ZB in respect of the tax, the later of—

the first day after the period of 12 months beginning immediately after the migration accounting period (as defined in Part 1 or 2 of Schedule 3ZB, as the case may be), and

the date on which the tax is payable under the plan, and

in any other case, the time when the amount of the tax is finally determined.

The persons within this subsection are—

any company which is, or within the pre-migration year was, a member of the same group as the migrating company,

any person who is, or within the pre-migration year was, a controlling director of the migrating company, and

any person who is, or within the pre-migration year was, a controlling director of a company which has, or within the pre-migration year had, control over the migrating company.

Any amount which a person is required to pay by a notice under this section may be recovered from the person as if it were tax due and duly demanded from the person.

If a person ("P") pays any amount which a notice under this section requires P to pay, P may recover the amount from the migrating company.

A payment in pursuance of a notice under this section is not allowed as a deduction in calculating any income, profits or losses for any tax purposes.

In this section—

"controlling director", in relation to a company, means a director of the company who has control of the company,
"group" has the meaning which would be given by section 170 of the 1992 Act if in that section for references to 75 per cent subsidiaries there were substituted references to 51 per cent subsidiaries, and
"pre-migration year" means the period of 12 months ending with the time when the migrating company ceases to be resident in the United Kingdom.

Section 109E: Liability of other persons for unpaid tax

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