D4.132 Transfer of company residence—payment of tax
A charge to UK tax is levied (an 'exit charge') on a transfer of company residence. The company is deemed to dispose of all capital assets on the date of migration — the net chargeable gain being taxable, except, broadly, to the extent that:
• the assets remain liable to UK taxation of capital gains as UK permanent establishment assets (see D4.116)
• the assets realised an ATED-related gain or loss (C2.1125) chargeable to CGT1 (see D4.131)2
• the assets would have generated a NRCGT charge (see C2.1130 for disposals made prior to 6 April 2019 and see C2.1139 for disposals made on or after 6 April 2019) if the company were a non-resident company at the time of the deemed disposal (see D4.131)3
The migrating company must make arrangements for securing payment of outstanding tax and must obtain HMRC's approval of those arrangements4.
Alternatively it can defer the tax (where certain condition are met) or enter into a CT exit charge payment plan5 (see below).
Where a company has ceased to be resident but the tax due in respect of periods prior to migration has not been met in full within six months of the date it becomes payable (either on the normal due date6, or on the due date as agreed in a CT exit charge payment plan7), HMRC may demand payment of the outstanding amount from specified persons connected with the company. The demand may be sent at any time within